RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Loeb & Loeb LLP
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, Esq.
------------------SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY-----------------
[Flatiron Industrial Park]
COLORADO
DEED OF TRUST, ASSIGNMENT OF RENTS,
SECURITY AGREEMENT AND FIXTURE FILING
THIS DEED OF TRUST, ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING
SECURES REVOLVING CREDIT INDEBTEDNESS. THE INDEBTEDNESS SECURED HEREBY IS
COMPOSED OF REVOLVING CREDIT TYPE INDEBTEDNESS, THE OUTSTANDING BALANCE OF WHICH
CAN FLUCTUATE UP OR DOWN ACCORDING TO PAYMENTS MADE ON THE INDEBTEDNESS AND
SUBSEQUENT ADVANCES.
THIS DEED OF TRUST, ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE
FILING, made as of the 26th day of September, 1996, by CORPORATE REALTY INCOME
FUND I, L.P., Delaware limited partnership (the "Trustor"), having an office at
▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, to the PUBLIC TRUSTEE OF BOULDER
COUNTY, COLORADO (the "Trustee"), for the benefit of FLEET BANK, NATIONAL
ASSOCIATION, a national banking association (the "Beneficiary"), having an
office at ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇.
W I T N E S S E T H:
WHEREAS, the Trustor is the owner of the fee estate in those certain
parcels of real property described in EXHIBIT A annexed hereto (together with
the improvements now or hereafter located thereon, collectively, the
"Premises"), and desires to convey the Premises in trust, to secure, among other
obligations, a certain loan being made concurrently herewith by the Beneficiary
to the Trustor, pursuant to the terms of a Loan Agreement of even date
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herewith between Trustor and Beneficiary (as the same may be amended or
otherwise modified from time to time, the "Loan Agreement"); and
WHEREAS, the indebtedness secured hereby is evidenced by that certain
Secured Promissory Note of even date herewith in the principal amount of
$24,000,000 (as the same may be amended or otherwise modified from time to time,
the "Note") made by the Trustor to the Beneficiary, which Note provides for a
variable rate of interest.
NOW, THEREFORE,
FOR THE PURPOSE OF SECURING payment of all of the liabilities and
obligations of the Trustor to the Beneficiary evidenced by the Note, plus
interest thereon and all sums necessary to protect the Beneficiary under this
Trust Deed or under the other Security Documents (as hereinafter defined), and
all other sums due and payable under the Security Documents, and all of the
other Obligations (as hereinafter defined), the Trustor does hereby grant,
transfer, assign, bargain, sell and convey, and by these presents does hereby
irrevocably grant, transfer, assign, bargain, sell and convey, in trust, unto
Trustee, in trust, with power of sale and right of entry and possession, all of
the Trustor's estate, right, title and interest in and to the Premises; and
TOGETHER with all and singular the easements, rights of way, air rights,
reservations, privileges, choses in action, options, tenements, hereditaments
and appurtenances thereunto belonging or in any way appertaining, including,
without limitation, all off-street parking rights and spaces, if any, and the
reversion and remainder of any or all of the foregoing; and all of the estate,
right, title, interest, claim or demand whatsoever of the Trustor therein and in
and to the Premises and/or the improvements thereon, and in and to all strips
and gores, and all alleys adjoining the land and in and to any land lying in the
bed of any street, road or avenue, open or proposed, in front of, or adjoining
or adjacent to the Premises, to the center line thereof, either in law or in
possession or expectancy, now or hereafter acquired;
TOGETHER with all of the right, title and interest of the Trustor in and to
(i) all buildings, vaults, and other improvements and additions thereto now
erected or hereafter constructed or placed upon the Premises or any part thereof
(the "Improvements"); (ii) to the extent permitted by law, the name or names, if
any, as may now or
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hereafter be used for each Improvement and the good will associated therewith,
as well as the trade names of the Improvements; and (iii) all machinery,
devices, fixtures, apparatus, interior improvements, appurtenances and equipment
of every kind and nature whatsoever now or hereafter attached to or placed in or
upon the Premises or the Improvements, or any part thereof, or used or procured
for use in connection with the operation of the Premises or any business
conducted thereon (except for fixtures and personal property that are at any
time the property of Space Tenants, as defined in SECTION 1.16, or independent
contractors employed at the Premises), all of the foregoing, except as
aforesaid, hereinafter collectively called "Building Service Equipment";
TOGETHER with all the right, title and interest of the Trustor in and to
all furniture, furnishings, decorations, chattels and other personal property
now or hereafter in, on or at said Premises (except for trade fixtures and
personal property that are at any time the property of Space Tenants), all of
the foregoing, except as aforesaid, hereinafter collectively called
"Furnishings;"
TOGETHER with all right, title and interest of the Trustor in and to all
insurance or other proceeds for damage done to the Improvements, Building
Service Equipment or Furnishings and all awards heretofore made or hereafter to
be made to or for the account of the Trustor for the permanent or temporary
taking by eminent domain of the whole or any part of the Premises, the
Improvements, the Building Service Equipment and the Furnishings or any lesser
estate in, or easement appurtenant to, the Premises (including, without
limitation, any awards for change of grade of streets), all of which proceeds
and awards are hereby assigned to the Beneficiary, subject to the further
provisions of this Trust Deed;
TOGETHER with all of the rents, issues, income, revenues, royalties,
proceeds, benefits and profits of the Mortgaged Premises (as hereinafter
defined), including amounts payable under all Space Leases (as hereinafter
defined), now in effect or hereafter entered into covering any part of the
Mortgaged Premises, as well as all rights and interest of the Trustor as
landlord thereunder, all of which are hereby assigned to the Beneficiary,
subject, however, to the right of the Trustor, as licensee, to receive and use
the same unless and until an Event of Default shall occur;
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TOGETHER with all of the records and books of account now or hereafter
maintained by the Trustor in connection with the operation of the Mortgaged
Premises;
TOGETHER with all water, water rights, shares of stock evidencing the same,
mineral rights, ditches, ditch rights, ▇▇▇▇▇, well rights, well permits,
springs, spring rights, reservoirs and reservoir rights appurtenant to, located
on, used or historically used in connection with the Premises or the
Improvements and all of the Trustor's rights and interests under applicable
state or federal law to all water, and to use or consent to use all water,
contained in or available from any part of the water-bearing formations
underlying the Premises, together with all associated easements and
rights-of-way, whether existing now or hereafter acquired;
TOGETHER with all deposits made with or other security given to utility
companies or governmental branches or agencies by the Trustor with respect to
the Mortgaged Premises, and all advance payments of insurance premiums made by
the Trustor with respect thereto;
TOGETHER with all development rights associated with the Premises, now
existing or hereafter transferred to the Premises from other real property;
TOGETHER with all licenses (including, but not limited to, any operating
licenses or similar matters), contracts, management agreements, franchise
agreements, permits, authorities or certificates required, used or useful in
connection with the use, enjoyment, occupancy, management or operation of the
Mortgaged Premises, except where the assignment or pledge of any such licenses,
permits or other rights is prohibited by applicable statute or by any applicable
issuing governmental agency; and
TOGETHER with any and all of the Trustor's rights in and to any and all
cash payments, reimbursements or other intangible rights arising in connection
with the development, operation or maintenance of the Mortgaged Premises,
including, without limitation, any tax appeal refunds, municipal reimbursements,
governmental subsidy payments and governmentally-registered credits (such as
emissions and reduction credits) (collectively, the "Payments and Intangibles");
TOGETHER with all proceeds and products of the foregoing.
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All of the foregoing estates, rights, privileges, interests and franchises
hereby granted and released, assigned, transferred, set over and mortgaged, or
intended so to be, being hereinafter collectively referred to as the "Mortgaged
Premises".
TO HAVE AND TO HOLD the Mortgaged Premises, now or hereafter owned
absolutely or in fee by the Trustor, together with all rights, hereditaments and
appurtenances in any way appertaining or belonging thereto, unto the Trustee,
forever for the uses set forth herein, in trust, and Trustor hereby mortgages
and grants to the Beneficiary a security interest in the Mortgaged Premises, to
secure the payment to the Beneficiary of the principal and of interest on the
Note at the maturity thereof (whether by acceleration or otherwise), all other
sums due under the Note or under this Trust Deed or under the Loan Agreement,
the performance of all covenants and agreements in the Security Documents and
all other obligations, whereupon this Trust Deed shall cease and be void and the
Mortgaged Premises shall be released at the cost of the Trustor.
ARTICLE I.
Certain Definitions
In addition to other definitions contained herein, the following terms
shall have the meanings set forth below, unless the context of this Trust Deed
otherwise requires:
1.1. "Affiliate" - shall mean (a) if with respect to a corporation, (i) any
officer or director thereof and any person or entity who or which is, directly
or indirectly, the legal or beneficial owner of more than ten (10%) percent of
any class of shares or other equity security of such corporation, or (ii) any
person or entity who or which, directly or indirectly, controls or is controlled
by or is under common control with such corporation and (b) if with respect to a
partnership or venture, any (i) general partner, (ii) general partner of a
general partner, (iii) partnership with a common general partner, (iv)
coventurer thereof, or (v) any person, trust, corporation, partnership, venture
or other entity who or which, directly or indirectly, controls or is controlled
by or is under common control with such partnership; and if any general partner
or general partner of a general partner or coventurer is a corporation, any
person or entity which is an Affiliate as defined in clause (a) above of such
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corporation. "Controls" (including the correlative meanings of "controlled by"
and "under common control with") means effective power, directly or indirectly,
to direct or cause the direction of the management and policies of such person
or entity.
1.2. "Backlease" means a sublease to the Trustor or its Affiliate made by a
lessee under a Space Lease.
1.3. "Beneficiary" shall mean the Beneficiary herein named or at any given
time the holder or holders of this Trust Deed and the Note.
1.4. "Due and payable" when used with reference to the principal of, or
premium or interest on, or when referring to any and all other sums secured by
this Trust Deed or any other of the Security Documents shall mean due and
payable, whether at the monthly or other date of payment or at the date of
maturity specified in the Note, this Trust Deed or the other Security Documents;
or by acceleration or call for payment as provided in the Note, hereunder or in
the other Security Documents, or, in the case of Impositions, the last day upon
which any charge may be paid without penalty and/or interest.
1.5. "Default Rate" shall mean the Involuntary Rate (as such term is
defined in the Note).
1.6. "Event of Default" shall have the meaning assigned to such term in the
Note.
1.7. "Governmental Authorities" shall mean all federal, state, county,
municipal and local governments and all departments, commissions, boards,
bureaus and offices thereof, having or claiming jurisdiction over the Mortgaged
Premises or any part thereof.
1.8. "Impositions" shall mean all duties, taxes, water and sewer rents,
rates and charges, assessments (including, but not limited to, all assessments
for public improvements or benefit), charges for public utilities, excises,
levies, license and permit fees and other charges, ordinary or extraordinary,
whether foreseen or unforeseen, of any kind and nature whatsoever, which prior
to or during the term of this Trust Deed will have been or may be laid, levied,
assessed or imposed upon or become due and payable out of or in respect of, and
become a lien on the Premises, the Improvements, Building Service Equipment,
Furnishings or any other property or rights included in the Mortgaged
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Premises, or any part thereof or appurtenances thereto, or which are levied or
assessed against the rent and income received by the Trustor from the Space
Leases (as defined in SECTION 1.15) by virtue of any present or future law,
order or ordinance of the United States of America or of any state, county or
local government or of any department, office or bureau thereof or of any other
Governmental Authority.
1.9. "Legal Requirements" shall mean all present and future laws,
ordinances, rules, regulations and requirements of all Governmental Authorities,
and all orders, rules and regulations of any national or local board of fire
underwriters or other body exercising similar functions, foreseen or unforeseen,
ordinary or extraordinary, which may be applicable to the Mortgaged Premises or
any part thereof, or to the sidewalks, alleyways, passageways, curbs and vaults
adjoining the same, or to the use or manner of use of any of the foregoing, or
to the owners, tenants, or occupants thereof, whether or not any such law,
ordinance, order, rule, regulation or requirement shall necessitate structural
changes or improvements or shall interfere with the use or enjoyment of any of
the foregoing, and shall also mean and include all requirements of the policies
of public liability, fire and all other insurance at any time in force with
respect to any of the foregoing.
1.10. "Obligations" shall mean the (a) aggregate unpaid principal amount
of, and accrued and unpaid interest on, the Note, plus (b) any and all
indebtedness, obligations and other liabilities of the Trustor to the
Beneficiary arising out of or in connection with or otherwise relating to the
Note, the Loan Agreement or any of the Security Documents, and/or any
agreement(s) of the Trustor with the Beneficiary pertaining thereto; in each
case whether now or hereafter existing, direct or indirect, absolute or
contingent, joint, several or independent, due or to become due, liquidated or
unliquidated, held or to be held by the Beneficiary and whether created directly
or acquired by assignment or otherwise.
1.11. "Peg Rate" - shall have the meaning assigned to such term in the
Note.
1.12. "Permitted Encumbrances" shall mean each of the exceptions to
coverage set forth in SCHEDULE B, PART I of that certain Preliminary Title
Report dated September 26, 1996, issued by Chicago Title Insurance Company, to
and accepted by the Beneficiary with respect to the Premises,
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and such other items as the Beneficiary, in its sole discretion, may approve in
writing.
1.13. "Person" shall mean and include any individual, corporation,
partnership, unincorporated association, trust, governmental agency or authority
or other entity.
1.14. "Security Documents" shall have the meaning assigned to such term in
the Note.
1.15. "Space Lease" shall mean any and all leases, subleases, licenses,
concession agreements or any other form of agreement, however denominated
(written or verbal, now or hereafter in effect), in which the Trustor (or any
predecessor in interest as owner of the Mortgaged Premises in the case of
existing Space Leases) now or hereafter grants a possessory interest in and to,
or the right to use and occupy the Mortgaged Premises, or any portion thereof,
and all renewals, extensions, modifications, amendments and other agreements
affecting the same.
1.16. "Space Tenant" shall mean the tenant or other user or occupant of
part or all of the Mortgaged Premises under any Space Lease.
1.17. "State" shall mean the State of Colorado.
1.18. "to the best of the Trustor's knowledge" shall mean the actual
knowledge of ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇., after reasonable inquiry and investigation.
1.19. "Trust Deed" shall mean this instrument as originally executed or, if
hereafter amended, modified or supplemented, as so amended, modified or
supplemented.
1.20. "Trustee" shall mean the Public Trustee of Boulder County, Colorado.
1.21. "Trustor" shall mean the Trustor herein named, any subsequent owner
or owners of the Mortgaged Premises, and its or their respective heirs,
executors, administrators, successors and assigns, but this provision shall not
be construed to limit the terms of SECTION 2.8 hereof.
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ARTICLE II.
Particular Covenants of the Trustor
The Trustor covenants and agrees as follows:
2.1. Payment of Indebtedness. The Trustor shall duly and punctually pay to
the Beneficiary, as and when due and payable, the indebtedness evidenced by the
Note and the other Obligations secured hereby. As used in this SECTION 2.1 and
elsewhere in this Trust Deed, the term "indebtedness" shall mean and include the
principal amount of the Note together with all interest thereon, any other
payments due to the Beneficiary under the Loan Agreement and/or any of the
Security Documents, all costs of collection provided for in the Note, the Loan
Agreement or any of the Security Documents, and all other sums and charges at
any time due under or otherwise secured by this Trust Deed.
2.2. Warranty of Title. The Trustor warrants that, to the best of the
Trustor's knowledge (a) the Mortgaged Premises are free and clear of all liens
and encumbrances other than the Permitted Encumbrances; (b) it owns the Building
Service Equipment and Furnishings free and clear of all liens and claims other
than in favor of the Beneficiary; (c) this Trust Deed is and will remain a valid
and enforceable first lien deed of trust on the Mortgaged Premises, subject only
to the Permitted Encumbrances; and (d) the Trustor has the right and lawful
authority to mortgage and convey the Mortgaged Premises in the manner and form
herein provided. The Trustor represents and warrants to the Beneficiary, to the
best of the Trustor's knowledge, and covenants for the benefit of the
Beneficiary, as follows:
(i) that the Trustor is lawfully seized and possessed of a fee in the
Premises and that the Trustor holds good legal and marketable title thereto
and to the rest of the Mortgaged Premises, subject only to the Permitted
Encumbrances; and
(ii) that the Mortgaged Premises are now free and clear of all liens
and encumbrances whatsoever, other than the Permitted Encumbrances, that
the Trustor has good right and lawful authority to mortgage and convey the
same in the manner and form herein provided and that the Trustor will
warrant and
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defend title to the Mortgaged Premises against all claims and demands
whatsoever.
2.3. To Maintain Priority of Lien.
2.3.1. This Trust Deed is and will be maintained as a valid first lien deed
of trust on the Mortgaged Premises, and the Trustor will not, directly or
indirectly, create or suffer or permit to be created, or to stand against the
Mortgaged Premises or any portion thereof, or against the rents, issues and
profits therefrom, and will promptly discharge, any lien or charge prior to or
upon a parity with or junior to the lien of this Trust Deed other than the
Permitted Encumbrances; provided, however, that the Trustor shall not be
required to pay any Imposition prior to the time it shall become due and payable
subject to the provisions of SECTION 2.4.1 hereof, and nothing herein contained
shall prevent the Trustor from contesting the validity of any such Imposition in
accordance with the provisions of SECTION 2.4.4. The Trustor will keep and
maintain the Mortgaged Premises, and every part thereof, free from all liens or
lien notices, of Persons supplying labor and/or materials in connection with any
construction, alteration, repair, improvement or replacement of the Improvements
or of the Building Service Equipment and Furnishings. If any such lien shall be
filed against the Mortgaged Premises, or any part thereof, the Trustor promptly
shall discharge the lien of record, by bonding or otherwise. The Trustor shall
exhibit to the Beneficiary, upon request, appropriate receipts or other
satisfactory evidence of the payment of the Impositions or any other item which
may, if not paid, give rise to a lien against the Mortgaged Premises.
2.4. To Pay Impositions.
2.4.1. The Trustor will pay or cause to be paid, as and when due and
payable, all Impositions levied upon the Mortgaged Premises or any part thereof.
However, if by law, any Imposition may at the option of the taxpayer be paid in
installments (whether or not interest shall accrue on the unpaid balance
thereof), the Trustor shall have the right to exercise such option and to pay
such Imposition, or cause it to be paid (together with any accrued interest on
the unpaid balance) in installments as they fall due and before any fine,
penalty, further interest or cost may be added thereto.
2.4.2. If an Event of Default shall occur and be continuing, then upon
demand of the Beneficiary, the
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Trustor shall deposit with the Beneficiary a sum which bears the same relation
to the annual insurance premiums for all insurance required by the terms hereof
and real estate taxes and assessments assessed against the Mortgaged Premises
for the insurance period or tax year then in effect, as the case may be, as the
number of months elapsed as of the date of such demand since the last preceding
installment of said premiums or taxes or assessments shall have become due and
payable bears to twelve (12). For the purpose of this computation, the month in
which such last preceding installment of premiums or real estate taxes or
assessments became due and payable and the month in which such demand is given
shall be included and deemed to have elapsed. On the first day of the month next
succeeding the month in which such demand is given, and thereafter on the first
day of each and every month during the term of this Trust Deed, the Trustor
shall deposit with the Beneficiary a sum equal to one-twelfth of such insurance
premiums and such taxes and assessments for the then-current insurance period
and tax year, so that as each installment of such premiums and taxes and
assessments shall become due and payable, the Trustor shall have deposited with
the Beneficiary a sum sufficient to pay the same. All such deposits shall be
received and held as part of such deposit by the Beneficiary (all such deposits
to be held in an account without interest thereon) and shall be applied to the
payment of each installment of such premiums and taxes and assessments as they
shall become due and payable. The Beneficiary shall, upon demand, furnish
evidence to the Trustor of the making of each such payment. If the amount of
such premiums and taxes and assessments has not been definitely ascertained at
the time when any such monthly deposits are required to be made, the Trustor
shall make such deposits based upon the amount of such premiums and taxes and
assessments for the preceding year, subject to adjustment as and when the amount
of such premiums and taxes and assessments are ascertained. If at any time when
any installment of such premiums and such taxes and assessments becomes due and
payable the Trustor shall not have deposited a sum sufficient to pay the same,
the Trustor shall, within five (5) days after demand, deposit any deficiency
with the Beneficiary. Upon payment in full of the indebtedness secured by this
Trust Deed, any remaining amount on deposit with the Beneficiary shall be repaid
to the Person lawfully entitled thereto. If an Event of Default shall occur and
be continuing, the Beneficiary may, at its option, apply all or any portion of
the amounts then on deposit with the Beneficiary pursuant to this SECTION 2.4.2
first to the payment of any premiums, taxes or assessments then due, and any
remaining amounts may be applied to the payment of the indebtedness. The Trustor
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shall deliver to the Beneficiary all insurance and tax bills promptly following
receipt during any period when such monthly deposits are to be made with the
Beneficiary.
2.4.3. The Trustor will pay all taxes and other governmental charges
(including, without limitation, stamp taxes), except income or franchise taxes
or similar taxes based upon or measured by income, assessed by the United States
government or any state or local governmental authority and imposed on the
Beneficiary, its successors by reason of the ownership of this Trust Deed or the
Note or the receipt of the interest or other sums payable thereunder or payable
by either the Trustor or the Beneficiary upon any increase in the indebtedness
secured hereby, or any modification, amendment, extension or consolidation of
this Trust Deed. Without limiting the foregoing and subject to the limitations
set forth above, the Trustor will also pay the whole of any tax imposed,
directly or indirectly, on this Trust Deed or the Note or the receipt of any
portion of the Indebtedness in lieu of a tax on the Mortgaged Premises or the
Improvements and Building Service Equipment, whether by reason of (a) the
passage after the date of this Trust Deed of any law of the State deducting from
the value of real property for the purposes of taxation any lien thereon; (b)
any change in the laws for the taxation of Trust Deeds or debts secured by trust
deeds for state or local purposes; (c) a change in the means of collection of
any such tax or otherwise; or (d) any tax, whether or not now existing, assessed
against, or withheld from, interest or other payments made by the Trustor or
assessed against this Trust Deed and which are assessed or levied by the
government of any foreign nation or political subdivision thereof, provided such
tax liability shall not result from the ownership of this Trust Deed by a Person
not a citizen of, or an entity not formed under the laws of, the United States
or any state. Within a reasonable time after payment of any such tax or
governmental charge, the Trustor will deliver to the Beneficiary satisfactory
proof of payment thereof, subject, however, to the right of the Trustor to
contest Impositions as hereinafter set forth. If the Trustor shall fail to pay
such tax or charge within fifteen (15) days after written notice, or if under
applicable law the Trustor's payment or agreement to pay the same shall be
unenforceable, the Beneficiary shall have the right to declare the entire unpaid
indebtedness and all accrued and unpaid interest thereon due and payable on a
date specified by the Beneficiary, but, in any event, not less than thirty (30)
days after written notice to the Trustor.
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2.4.4. The Trustor shall have the right to contest the amount or validity,
in whole or in part, of any Imposition, or to seek a reduction in the valuation
of the Mortgaged Premises, or any part thereof, as assessed for real estate or
personal property tax purposes by appropriate proceedings diligently conducted
in good faith, but only after payment of such Imposition, unless such payment
would operate as a bar to such contest or materially adversely interfere with
the prosecution thereof, in which event the Trustor may postpone or defer
payment of such Imposition (but not the payment of any monthly deposits pursuant
to SECTION 2.4.2 hereof); and upon request by the Trustor, the Beneficiary shall
postpone or defer payment of such Imposition; provided, however, that if at any
time the Mortgaged Premises, the Building Service Equipment, the Furnishings, or
any part thereof would, in the Beneficiary's reasonable judgment, by reason of
such postponement or deferment be in imminent danger of being forfeited or lost,
or if the Beneficiary might be subjected to any civil or criminal liability or
other sanction, then the Trustor, on demand, shall immediately pay or cause to
be paid the amount so contested and unpaid, together with all interest and
penalties in connection therewith.
2.4.5. The certificate, advice or bill of the appropriate official
designated by law to make or issue the same or to receive payment of any
Imposition indicating the nonpayment of such Imposition shall be prima facie
evidence that such Imposition is due and payable but unpaid at the time of the
making or issuance thereof.
2.5. Insurance; Restoration Following Casualty.
2.5.1. Until the indebtedness secured hereby is paid in full, the Trustor
shall at its own expense at all times maintain or cause to be maintained on all
of the Mortgaged Premises (a) comprehensive general liability insurance,
including umbrella liability insurance, covering all claims for bodily injury,
including death, and property damage occurring on, in or about the Mortgaged
Premises in an aggregate amount of not less than Five Million Dollars
($5,000,000) per occurrence, and a single limit of not less than Two Million
Dollars ($2,000,000) per person and per occurrence for personal injury, bodily
injury and property damage; the policy shall have no deductible or self insured
retention requirements; the policy limits of such insurance, if requested by the
Beneficiary, shall be increased from time to time to reflect what a reasonably
prudent owner or lessee of buildings or improvements similar in type and
locality to the Mortgaged Premises would carry; during any
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period of substantial alterations or improvements in, on or to the Mortgaged
Premises, the Trustor will cause the comprehensive general liability insurance,
including umbrella liability insurance, endorsed to provide owners' and
contractors' protective liability coverage, including completed operations
liability coverage; (b) physical damage insurance (all risk non-reporting
property insurance, including earthquake insurance, with the Beneficiary named
as loss payee), covering the Mortgaged Premises for loss or damages resulting
from the perils of fire, lightning, earthquake, and such other risks and hazards
as are provided under the current standard "Extended Coverage Endorsement" and
vandalism and malicious mischief coverage, for the full replacement value of the
Mortgaged Premises on a stipulated and agreed-amount basis; (c) if the Mortgaged
Premises is in an area identified as a flood hazard area by the Secretary of
Housing and Urban Development, flood insurance, to the extent obtainable, in an
amount equal to the lesser of the full replacement value of the Mortgaged
Premises or the maximum amount available under the Federal flood insurance
program; (d) boiler and machinery insurance covering all boilers, machinery, air
conditioning, pressure vessels, and similar type equipment commonly covered
under a broad-form boiler and machinery policy, in an amount satisfactory to the
Beneficiary; (e) insurance against such other risks of damage, hazards,
casualties and contingencies in such amounts as the Beneficiary shall from time
to time reasonably require, provided that insurance against such other risks,
hazards, casualties or contingencies shall then be commonly carried by prudent
owners or lessees of building or improvements in the locality similar in
character, construction, use and occupancy to the Improvements, Building Service
Equipment and Furnishings on, or constituting a part of, the Mortgaged Premises;
and (f) loss of rents/business interruption coverage in an amount sufficient to
pay all Impositions, insurance premiums, interest and principal installments and
all other amounts due under the Note and the Loan Agreement and the normal
operating expenses of the Mortgaged Premises, all for a period of one (1) year.
Furthermore, the Beneficiary reserves the right to require additional insurance
and/or higher policy limits than heretofore specified if such additional
insurance and/or higher policy limits are commercially reasonable for similar
properties, which right may be exercised by written notice to the Trustor, and,
as soon thereafter as practicable, but in any event within thirty (30) days of
the receipt thereof, the Trustor agrees to obtain insurance coverage complying
with such notice. The proceeds of all such insurance (except the insurance
specified in SECTION 2.5.1(a)) shall be paid solely to the
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Beneficiary and be held, applied or disbursed by the Beneficiary as provided in
SECTIONS 2.5.7 and 2.5.8.
2.5.2. All insurance required in SECTION 2.5.1 shall be evidenced by valid
and enforceable policies, in form and substance as shall be required by the
Beneficiary from time to time, and issued by and distributed among insurers of
recognized responsibility having an A.M. Best's Guide of A:XII or better, a
financial size category of Class XI or above, and the total limit of liability
shall not exceed ten percent (10%) of the total policyholders' surplus. Such
insurers shall be authorized to do business in the State and in all other
respects shall be reasonably satisfactory to the Beneficiary. The originals of
all such policies, or duplicate copies or certificates thereof, shall be
delivered to the Beneficiary concurrently with the execution and delivery of
this Trust Deed. Thereafter, all renewal or replacement policies, or duplicate
copies or certificates thereof, shall be delivered to the Beneficiary not less
than thirty (30) days prior to the expiration date of the policy or policies to
be renewed or replaced, in each case accompanied by evidence reasonably
satisfactory to the Beneficiary that all premiums currently payable with respect
to such policies have been paid in full by or at the direction of the Trustor.
2.5.3. All such insurance policies shall (a) except for any liability
policy required hereunder, contain a standard noncontributory form of mortgagee
clause (in favor of and entitling the Beneficiary to collect any and all
proceeds payable under such insurance), as well as a standard waiver of
subrogation endorsement, all to be in form and substance reasonably satisfactory
to the Beneficiary; (b) provide that such policies may not be cancelled or
amended without at least thirty (30) days prior written notice to the
Beneficiary; and (c) provide that no act, omission or negligence of the Trustor,
or its agents, servants or employees, or of any Space Tenant under any Space
Lease, which might otherwise result in a forfeiture of such insurance or any
part thereof, shall in any way affect the validity or enforceability of such
insurance insofar as the Beneficiary is concerned. The Trustor shall not carry
separate insurance, concurrent in kind or form or contributing in the event of
loss with any insurance required under this SECTION 2.5. All losses under such
insurance policies shall be adjusted by the Trustor in the case of any single
instance of such damage or destruction not exceeding $200,000, by the Trustor
and the Beneficiary in the case of any such single instance of damage or
destruction exceeding such amount, provided that in no event
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shall the Trustor approve or consent to any final adjustment in any amount
exceeding the amount specified above in this sentence without obtaining the
Beneficiary's prior approval (which approval shall not be unreasonably withheld)
of the amount of such adjustment, and solely by the Beneficiary in the case when
an Event of Default exists and is continuing.
2.5.4. The Trustor, at its expense, will furnish to the Beneficiary, within
ninety (90) days after written demand, but in no event, except for reasonable
cause, more frequently than annually, proof of the then full replacement value
of each of the Improvements and the Building Service Equipment and Furnishings
therein, such proof to be by appraisals reasonably satisfactory in form and
substance to the Beneficiary and prepared by an appraiser (who may be an
appraiser for the insurance company insuring such property) designated and paid
for by the Trustor and approved by the Beneficiary, which approval shall not be
unreasonably withheld or delayed.
2.5.5. If the Beneficiary shall, by any means, acquire the title or estate
of the Trustor in or to any portion of the Mortgaged Premises, it shall
thereupon become the sole and absolute owner of all insurance policies affecting
such portion of the Mortgaged Premises held by, or required hereunder to be
delivered to, the Beneficiary, with the sole right to collect and retain all
unearned premiums thereon; and the Trustor shall be entitled only to a credit in
reduction of the then outstanding indebtedness secured hereby in the amount of
the short rate cancellation refund, when and if received by Beneficiary. The
Trustor agrees, immediately upon demand, to execute and deliver such assignments
or other authorizations or instruments as may, in the reasonable opinion of the
Beneficiary, be reasonably necessary or desirable to effectuate any of the
provisions of this SECTION 2.5.5.
2.5.6. If any of the Improvements, Building Service Equipment or
Furnishings shall be damaged or destroyed, in whole or in part, by fire or other
casualty, the Trustor shall give prompt notice thereof to the Beneficiary, and,
without regard to the availability or adequacy of insurance proceeds, shall
promptly following receipt of any insurance proceeds or the date when any such
proceeds are made available to the Trustor in accordance with the terms hereof,
commence to restore, replace, rebuild or alter the same as nearly as possible to
the condition, character and value thereof existing immediately prior to such
damage or destruction. Any insurance proceeds in respect of such damage or
destruction, or any Award (as
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defined in SECTION 3.2) for a partial taking which is not a substantial or total
taking, as such terms are referred to in ARTICLE III hereof, at the option of
the Beneficiary, may either (i) be applied as a prepayment of the unpaid balance
of the principal of the Note and of accrued and unpaid interest thereon and as a
payment of any other sums due and owing under the Note, the Loan Agreement and
the Security Documents, or (ii) be made available to pay or reimburse costs
incurred for restoration, replacement or rebuilding necessitated as a result of
such damage or destruction, or as a result of such taking, as the case may be,
or (iii) be used for any other purpose or object deemed appropriate by the
Beneficiary in connection with the Mortgaged Premises, provided, however, that
the Beneficiary may not elect either option (i) or (iii) above if, and for so
long as all of the following conditions (collectively, the "Insurance or Award
Conditions" have been and remain satisfied: (a) no Event of Default has occurred
and is continuing or would occur as a result of such casualty or taking and no
event has occurred that with the passage of time or the giving of notice, or
both, would constitute an Event of Default; (b) the balance of the insurance
proceeds or such Award either initially paid to the Beneficiary or deposited
with the Depository (as hereinafter defined) or remaining from time to time,
shall be sufficient, in the Beneficiary's reasonable judgment, to complete the
restoration, replacement or rebuilding, or the Trustor shall have deposited such
sufficient funds with the Beneficiary or the Depository; and (c) the Beneficiary
determines, in its reasonable discretion, that (i) the Loan to Value Ratio (as
defined in the Loan Agreement, and taking into consideration the value of all of
the Projects, as defined in the Loan Agreement) is not greater than 55%, and
(ii) the Debt Service Coverage Ratio (as defined in the Loan Agreement, and
taking into consideration the loss of income resulting from such damage or
destruction as projected by the Beneficiary in its reasonable discretion) is not
less than 1.40:1.0. Notwithstanding the foregoing, if an event has occurred and
is continuing that with the passage of time or the giving of notice, or both,
would constitute an Event of Default but the same has not yet matured into an
Event of Default, then, if the conditions set forth in the foregoing clauses (b)
and (c) have been or will be, in the Beneficiary's reasonable judgment,
satisfied, the Beneficiary shall not elect either option (i) or (iii) unless
such event shall have matured into an Event of Default and, unless and until
such event shall have so matured into an Event of Default or such event has been
cured or shall otherwise cease to exist, the Beneficiary (or the Depository)
shall not release any such insurance proceeds or Award and the same shall be
held until an Event
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of Default occurs or the Default has been cured or shall otherwise cease to
exist.
2.5.7. Any such insurance proceeds (other than the proceeds of the rent
insurance policy, which shall be paid as provided in SECTION 2.5.8 below) or
Award which are to be applied to restoration, replacement or rebuilding of the
Mortgaged Premises shall, after payment or reimbursement to the Beneficiary of
all reasonable costs and expenses of the Beneficiary in collecting such proceeds
or Award, be applied upon satisfaction of the following provisions and
conditions:
(a) If the damage be of such nature as to require the Trustor to
construct a replacement for, or to alter in any material or substantial
way, the damaged or destroyed items, the Trustor shall, before commencing
any such work, submit copies of the plans and specifications therefor to
the Beneficiary for the Beneficiary's approval, such approval to not be
unreasonably withheld or delayed.
(b) If after payment or reimbursement to the Beneficiary of all costs
and expenses of the Beneficiary in collecting such insurance proceeds or
Award, the aggregate insurance proceeds or Award received by reason of any
single instance of such damage or destruction or condemnation, as the case
may be, shall be $200,000 or less such insurance proceeds or Award shall be
paid to the Trustor, which shall hold all amounts so received in trust for
application first to pay the entire cost of restoring, repairing,
rebuilding or replacing the damaged or destroyed items, before any portion
of such proceeds may be used or applied for any other purpose. If the
aggregate net insurance proceeds or Award by reason of any single instance
of such damage or destruction or condemnation, as the case may be, shall be
more than $200,000 such sums shall be held and disbursed by Fleet Bank,
National Association or, if this Trust Deed is held by another financial
institution, by such financial institution or, if this Trust Deed is not
held by a financial institution, by a financial institution selected by the
then Beneficiary (the holder of such monies, the "Depository") in
accordance with the following provisions of this SECTION 2.5.7.
(c) The Beneficiary shall have received as to each such disbursement a
certificate of the Trustor (i) requesting the payment of a specified
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amount of such insurance or condemnation proceeds; (ii) describing in
reasonable detail the work and materials applied to the restoration,
replacement or rebuilding of the damaged, destroyed or taken Improvement,
or Building Service Equipment and/or Furnishings located therein, since the
date of the last such certificate; (iii) stating that the requested amount
does not exceed the cost of such work and materials; and (iv) stating that
a request for payment for such work and materials has not previously been
made, accompanied by:
1. a certificate of an independent engineer or architect
designated by the Trustor, who shall have been approved in writing by
the Beneficiary (such approval not to be unreasonably withheld),
stating (i) that the work and materials described in the accompanying
certificate of the Trustor were satisfactorily performed and furnished
and were necessary, appropriate or desirable to the restoration,
replacement or rebuilding of the damaged, destroyed or taken
Improvement, or Building Service Equipment and/or Furnishings; (ii)
that the amount specified in such certificate of the Trustor does not
exceed the reasonable cost of such work and materials; and (iii) the
additional amount, if any, required to complete the restoration,
replacement or rebuilding of the damaged, destroyed or taken
Improvement, Building Service Equipment and/or Furnishings; and
2. evidence reasonably satisfactory to the Beneficiary (i) that
there exists no filed or recorded lien, or lien notice, or encumbrance
or charge in respect of all or any part of the Mortgaged Premises that
is prior to or on a parity with the lien of this Trust Deed, except as
may be permitted in the Permitted Encumbrances; (ii) that neither the
Mortgaged Premises nor any part thereof is subject to any recorded or
filed mechanic's, laborer's, materialman's or any similar lien,
encumbrance or charge; and (iii) that none of the Building Service
Equipment and Furnishings provided in connection with such
restoration, replacement or rebuilding is subject to any security
interest other than in favor of the Beneficiary;
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Upon satisfaction of the conditions set forth herein, the Beneficiary shall
pay to the Trustor the amount of such insurance or condemnation proceeds
requested in such certificate of the Trustor or consent to the Depository's
payment thereof, as the case may be; provided, however, that in no event shall
the balance of insurance or condemnation proceeds held by the Beneficiary and
the Depository be reduced below the amount specified in such certificate of the
independent engineer or architect as the amount required to complete the
restoration, replacement or rebuilding of the damaged, destroyed or taken
Improvement, Building Service Equipment and/or Furnishings. Each such payment,
whether made by the Beneficiary or the Depository, shall be held by the Trustor
in trust and shall be used solely for the payment of the cost of the work and
materials described in the certificate of the Trustor, or if such cost or any
part thereof has theretofore been paid by the Trustor out of its own funds, then
for the reimbursement to the Trustor of any such cost or part thereof paid by
it. Any balance of insurance or condemnation proceeds held by the Beneficiary
after the completion of the restoration, replacement or rebuilding and payment
of all costs incurred in connection therewith, to be evidenced by a certificate
to such effect of such independent engineer or architect delivered to the
Beneficiary, shall, if no Event of Default shall have occurred and be
continuing, be released to the Person lawfully entitled thereto. Notwithstanding
the foregoing, if the Trustor needs to make deposits with or payments to
contractors prior to the work being performed, if the Beneficiary is otherwise
obligated to allow funds to be used to rebuild or restore, the Beneficiary
agrees that it will not unreasonably withhold or delay its consent to the
Trustor's request that such deposits or advances payments be allowed.
2.5.8. All proceeds of rent insurance payable as a result of the occurrence
of any fire or other casualty which affects the Mortgaged Premises, or any part
thereof, shall be paid to the Beneficiary or, if the Beneficiary is not a
financial institution, the Depository. The Beneficiary or the Depository, as the
case may be, if it shall receive such proceeds, shall hold such proceeds in
trust if permitted under law, and in an account bearing interest (payable to or
for account of the Trustor), and shall apply or cause such proceeds (including
any net interest thereon) to be applied to the payment of those items referred
to in SECTION 2.5.1(f) which become, and as they become, due and payable from
and after the date of the occurrence of such damage or loss, until the
completion of the necessary restoration or replacement by the Trustor or
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until the exhaustion of such proceeds (including any interest thereon),
whichever first occurs. Upon completion of such restoration or replacement, any
balance of such rent insurance proceeds, together with the interest thereon, if
any, not theretofore applied as provided herein, in the hands of the Beneficiary
or the Depository, as the case may be, shall, provided that no Event of Default
shall have occurred and be continuing, be paid to the Person lawfully entitled
thereto.
2.5.9. Nothing in this SECTION 2.5 contained shall (i) relieve the Trustor
of its duty to repair, restore, rebuild or replace the Improvements, Building
Service Equipment and/or Furnishings following damage or destruction by fire or
other casualty or taking in the event that no Award or an inadequate Award or
that no or inadequate proceeds of insurance are available to defray the cost of
such repairing, restoring, rebuilding or replacement (provided, however, the
Trustor shall be permitted to receive the insurance proceeds upon satisfaction
of the conditions set forth herein provided, in addition, that all of the
Insurance or Award Conditions have been and remain satisfied), or (ii) relieve
the Trustor of its obligation to pay principal and interest and to make all
other payments required by the Note, the Loan Agreement and this Trust Deed
subsequent to the occurrence of any fire or other casualty, or taking, except
if, and to the extent that, any proceeds of rent insurance are applied by the
Beneficiary in accordance with SECTION 2.5.8 to such required payments.
2.5.10. If, while any insurance proceeds or Award is being held by the
Beneficiary or the Depository, an Event of Default shall occur and be
continuing, the Beneficiary shall be entitled to receive and apply all such
insurance proceeds or Award in reduction of the indebtedness and other
obligations secured by this Trust Deed, in such order and respective amounts, as
the Beneficiary in its discretion shall determine.
2.6. To Comply with Laws.
2.6.1. The Trustor, at its own expense, will promptly cure all violations
of law affecting the Mortgaged Premises, or any part thereof, and/or the use and
operation thereof and will promptly comply, or cause to be complied with, all
present and future Legal Requirements. However, the Trustor shall have the
right, after prior notice to the Beneficiary, to contest by appropriate legal
proceedings, diligently conducted in good faith, the validity or application of
any Legal Requirement if and so
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long as the Trustor shall promptly furnish to the Beneficiary a certificate to
such effect showing the steps taken to comply with such provisions, provided
that:
(a) if by the terms of any such Legal Requirement, compliance
therewith pending the prosecution of any such proceeding may be delayed
legally without incurring any lien, charge or liability of any kind against
the Mortgaged Premises, or any part thereof, and without subjecting the
Trustor or the Beneficiary to any liability, civil or criminal, for failure
so to comply therewith, the Trustor may delay compliance therewith until
the final determination of any such proceeding; and
(b) if any lien, charge or civil liability would be incurred by reason
of any such delay, the Trustor nevertheless, on the prior written consent
of the Beneficiary, such consent not to be unreasonably withheld, may
contest and delay compliance with the Legal Requirement, provided that such
delay would not subject the Beneficiary to criminal liability and the
Trustor (i) furnishes to the Beneficiary security reasonably satisfactory
to the Beneficiary against loss or injury by reason of such contest or
delay and (ii) prosecutes the contest with due diligence.
2.6.2. Notwithstanding the provisions of SECTION 2.6.1, if any delay in
compliance with any Legal Requirement shall, in the reasonable judgment of the
Beneficiary, place all or any part of the Mortgaged Premises in imminent danger
of being forfeited or lost, the Trustor shall, upon written notice from the
Beneficiary, immediately comply with such Legal Requirement.
2.6.3. The Trustor will use and permit the use of the Mortgaged Premises
only in accordance with the material requirements of any applicable licenses and
permits issued by Governmental Authorities.
2.6.4. The Trustor will procure, pay for and maintain (or cause to be
procured, paid and maintained) all permits, licenses and other authorizations
required to be procured and maintained by the owners and operators of the
Mortgaged Premises for any then use of all or any part of the Mortgaged Premises
then being made and for the lawful and proper operation and maintenance thereof.
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2.7. Limitation on Alterations and Demolition.
2.7.1. The Trustor shall not voluntarily demolish, replace or alter the
Mortgaged Premises, or any part thereof, or voluntarily make any addition
thereto, or voluntarily construct any additional improvements thereon, or suffer
any of the same to occur, whether structural or otherwise (collectively,
"change"), without the prior written consent of the Beneficiary, which consent
shall not be unreasonably withheld or delayed; provided, however, that if no
Event of Default is continuing and such change involves an estimated cost of
less than $100,000 and is non-structural or if no Event of Default is continuing
and such change is non-structural and is being made to prepare space for a Space
Tenant pursuant to a Space Lease entered into in accordance with the Loan
Agreement, then, in either of such events, the Beneficiary's consent shall not
be required; provided, further, however, that if any such change is required by
law, the Trustor may make such change with the prior written consent of the
Beneficiary, which consent the Beneficiary will not unreasonably withhold or
delay. As a condition to any consent under this SECTION 2.7.1, the Beneficiary
may require (a) that plans and specifications for the proposed work, prepared by
a reputable architect reasonably satisfactory to the Beneficiary, be submitted
to the Beneficiary for approval, and (b) that the Trustor obtain a payment and
performance bond or other security reasonably satisfactory to the Beneficiary in
form and amount reasonably satisfactory to the Beneficiary from the contractor
or subcontractor performing the work unless such work amounts to less than
$200,000 in aggregate total cost. All work performed by or on behalf of the
Trustor shall be completed with all reasonable diligence and continuity, in a
good and workmanlike manner, and in compliance with all applicable Legal
Requirements. Unless, and to the extent that, the provisions of SECTION 2.7.2 be
applicable, no Building Service Equipment or Furnishings shall be removed from
the Mortgaged Premises during the course of any such work without prior
notification to the Beneficiary and unless provision is made for return or
replacement on or prior to the completion of the work. The provisions of this
SECTION 2.7.1. shall apply to any change made or required to be made by the
Trustor in the course of complying with any other of the provisions of this
Trust Deed. A duplicate set of all plans and specifications required to be filed
with any Governmental Authority prior to, or at any time in connection with, any
such alteration, demolition or new construction shall be furnished to the
Beneficiary. The Trustor will pay on demand the reasonable expenses incurred
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by the Beneficiary in the review of plans and specifications provided for in
this Trust Deed.
2.7.2. The Trustor shall have the right, at any time and from time to time,
to remove and dispose of any item of Building Service Equipment or Furnishings
which may have become obsolete or unfit for use or which is no longer useful in
the operation of the Improvements, provided that the Trustor promptly replaces
such item with other Building Service Equipment or Furnishings, free of superior
title, liens or claims (other than in favor of the Beneficiary) unless consent
of the Beneficiary is first obtained, not necessarily of the same character but
of at least equal quality, value and usefulness in connection with the operation
and maintenance of the Mortgaged Premises, provided, further, however, no
removal of any item of Building Service Equipment or Furnishings then having a
fair market value of $50,000 or more shall be made without the prior written
consent of the Beneficiary, which consent will not be unreasonably withheld or
delayed. However, if by reason of technological or other developments in the
operation and maintenance of buildings and other improvements of the general
character of the Improvements or a change in the use of the Mortgaged Premises
or any part thereof, no replacement of the Building Service Equipment or
Furnishings so removed would be necessary or desirable for the proper operation
or maintenance of the Improvements, the Trustor shall not be required to replace
the item so removed.
2.8. Limitation on Disposition of the Mortgaged Premises.
2.8.1. Except as expressly set forth in this Trust Deed or the Loan
Agreement (including, without limitation, SECTIONS 5.01 and 6.21 of the Loan
Agreement), the Trustor shall not directly or indirectly sell, assign, mortgage,
alienate, pledge or otherwise transfer or further encumber the Mortgaged
Premises or any part thereof or any interest therein or in any of the rents,
profits or income generated thereby, whether voluntarily, involuntarily, by
operation of law or otherwise, or lease all or any portion thereof or an
undivided interest therein, without the prior written consent of the
Beneficiary. The foregoing events are hereinafter referred as a "Transfer". Any
transfer without prior written the consent of the Beneficiary is an Event of
Default.
2.8.2. If there shall be a violation of the terms and provisions of SECTION
2.8.1, whether by the
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Trustor or any other person, in addition to all other rights and remedies
available to the Beneficiary under this Trust Deed, the Beneficiary shall have
the option, by the giving of notice to the Trustor, of declaring the entire
unpaid principal balance of the Note, together with all accrued and unpaid
interest and all other sums and charges evidenced thereby or payable pursuant to
the Loan Agreement, immediately due and payable.
2.9. Maintenance of Mortgaged Premises; Covenant Against Waste; Inspection
by the Beneficiary. The Trustor will not commit or permit waste on the Mortgaged
Premises and, at its expense, will keep and maintain the Improvements, the
Building Service Equipment and Furnishings in its (or their) present state of
repair and condition, reasonable wear and tear excepted, and, if improved, in
such improved state of repair and condition, reasonable wear and tear excepted;
provided, that this shall not limit the Trustor's other obligations hereunder,
such as compliance with laws. The Trustor shall do or cause to be done all
maintenance and make or cause to be made all repairs as may be required by the
landlord under any Space Lease. The Trustor will neither do nor permit to be
done anything to the Mortgaged Premises that may materially impair the value
thereof or which may violate any covenant, condition or restriction affecting
the Mortgaged Premises, or any part thereof, or which would effect any material
change therein or in the condition thereof that would increase the danger of
fire or other hazard arising out of the operation of the Mortgaged Premises.
Subject to the rights of Space Tenants, the Beneficiary, and its representatives
and agents, may enter and inspect the Mortgaged Premises at any time after
reasonable notice (which may be oral) during usual business hours, and the
Trustor shall, within thirty (30) days after demand by the Beneficiary (or
immediately upon demand in case of emergency), make such repairs, replacements,
renewals or additions, or perform such items of maintenance, to the Mortgaged
Premises as the Beneficiary may reasonably require in order to cause the
Mortgaged Premises to comply with the standards established in this SECTION 2.9.
2.10. To Furnish Certificates; Other Reporting Requirements.
2.10.1. The Trustor will, at its own expense, deliver to the Beneficiary,
within fifteen (15) days after written request, but no more frequently than once
per six (6) month period, a written statement executed by the Trustor, in
recordable form, setting forth to the best of the Trustor's knowledge, the
amount then unpaid upon the
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Note and secured by this Trust Deed and stating whether any offsets or defenses
exist against the indebtedness secured hereby; and, if any such offsets or
defenses are alleged to exist, then the factual basis and amount of such claimed
offsets or defenses.
2.10.2. The Trustor will, if requested by the Beneficiary, deliver to the
Beneficiary a certificate of an officer of the general partner of the Trustor or
of such general partner's general partner, to the effect that he is familiar
with this Trust Deed and the other Security Documents, has reviewed the affairs
of the Trustor, and to the best of his knowledge and belief there exists no
Event of Default and no act or event has occurred or exists which with notice or
lapse of time or both could become such an Event of Default, or if any such
event or Event of Default exists, specifying it and what action the Trustor is
taking to cause it to be remedied.
2.11. After-Acquired Property. All right, title and interest of the Trustor
in and to all improvements, betterments, renewals, substitutes and replacements
of, and all additions and appurtenances to, the Mortgaged Premises hereafter
acquired, constructed, assembled or placed on the Mortgaged Premises,
immediately upon such acquisition, construction, assembly or placement, as the
case may be, and in each such case without any further mortgage, conveyance or
assignment or other act of the Trustor, shall become subject to the lien of this
Trust Deed as fully and completely, and with the same effect, as though now
owned by the Trustor and specifically described in the granting clauses hereof;
and at any time and from time to time the Trustor, on demand, will execute,
acknowledge and deliver to the Beneficiary any and all such further assurances,
mortgages, conveyances or assignments as the Beneficiary may reasonably require
to further evidence, confirm and perfect the provisions of this SECTION 2.11.
2.12. Further Assurances. The Trustor shall, at its sole cost and without
expense to the Beneficiary, on demand, do, execute, acknowledge and deliver all
and every such further acts, deeds, conveyances, mortgages, assignments, notices
of assignment, transfers and assurances as the Beneficiary shall from time to
time reasonably require for better assuring, conveying, assigning, transferring
and confirming unto the Beneficiary the property and rights hereby mortgaged or
assigned or intended now or hereafter so to be, or which the Trustor may be or
may hereafter become bound to convey, mortgage or assign to the Beneficiary, or
for carrying out the intention or facilitating the
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performance of the terms of this Trust Deed, or for filing, registering or
recording this Trust Deed.
2.13. Recorded Instruments. The Trustor will promptly perform and observe,
or cause to be performed and observed, all of the terms, covenants and
conditions of all instruments of record affecting the Mortgaged Premises (other
than non-consensual encumbrances hereafter affecting the Mortgaged Premises, the
validity or enforceability of which the Trustor is contesting in accordance with
this Trust Deed) where non-compliance therewith affects the security of this
Trust Deed or imposes any duty or obligation upon the Trustor or any Space
Tenant. The Trustor shall do or cause to be done all things reasonably required
to preserve intact and unimpaired and to renew any and all rights-of-way,
easements, grants, appurtenances, privileges, licenses, franchises and other
interests and rights in favor of or constituting any portion of the Mortgaged
Premises. The Trustor will not, without the prior written consent of the
Beneficiary, which consent shall not be unreasonably withheld or delayed,
initiate, join in or consent to any private restrictive covenant or other public
or private restriction as to the use of all or any portion of the Mortgaged
Premises. The Trustor will, however, comply with all lawful restrictive
covenants and zoning ordinances and other public or private restrictions
affecting all or any portion of the Mortgaged Premises.
ARTICLE III.
Condemnation
3.1. Notice of Taking. The Trustor shall promptly notify the Beneficiary if
the Trustor receives notice of the institution of any proceeding or negotiations
for the taking of the Mortgaged Premises, or any part thereof, whether for
permanent or temporary use and occupancy in condemnation or by the exercise of
the power of eminent domain or by agreement of interested parties in lieu of
such condemnation (all the foregoing called a "taking"); shall keep the
Beneficiary currently advised, in detail, as to the status of such proceedings
or negotiations and will promptly give to the Beneficiary copies of all notices,
pleadings, judgments, determinations and other papers received or delivered by
the Trustor in connection with any such proceedings. The Beneficiary shall have
the right to appear and participate in such proceedings and may be represented
by counsel. The Trustor will not, without the
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Beneficiary's prior written consent, which consent shall not be unreasonably
withheld or delayed, enter into any agreement for the taking of the Mortgaged
Premises, or any part thereof, with anyone authorized to acquire the Mortgaged
Premises by eminent domain or in condemnation.
3.2. Condemnation Award. If the Mortgaged Premises shall be the subject of
a taking the Beneficiary shall be entitled to and shall receive the total of
such portion of all awards made that shall be allowed to the Trustor with
respect to all the right, title and interest of the Trustor in and to the
Mortgaged Premises (the award made in any total, partial or temporary taking is
herein called the "Award"), provided that the obligations of the Trustor to
perform the terms, covenants and conditions of this Trust Deed, if any, affected
by such taking shall continue unimpaired until the actual vesting of title in
such proceeding and the actual receipt by the Beneficiary of the Trustor's share
of the entire Award resulting from such taking.
3.3. Application of Award. The Beneficiary shall have the option of
treating a total taking or a substantial taking (as hereinafter defined) as an
Event of Default and of accelerating the entire indebtedness secured hereby, in
which event it shall apply the Trustor's entire Award in reduction of such
indebtedness (including principal, interest and other sums secured hereby, in
such order as the Beneficiary may determine) and shall turn over any balance
remaining, if any, to the Person lawfully entitled thereto; or if the
Beneficiary shall not so elect to accelerate the indebtedness and apply the
Award thereto, then the total Award shall, regardless of amount, be deposited
with the Beneficiary or with the Depository, the Trustor hereby agreeing to
elect that such proceeds be held and disbursed by the Depository in accordance
with SECTIONS 2.5.6, 2.5.7, 2.5.8, 2.5.9 and 2.5.10 hereof for restoration
required to be made by the Trustor. If there be a partial taking, the net
proceeds of the Award shall be deposited with the Beneficiary and applied by the
Beneficiary in accordance with the provisions of SECTIONS 2.5.6, 2.5.7, 2.5.9
and 2.5.10. Any Award remaining after the completion of such restoration,
replacement or rebuilding shall be applied in reduction of the indebtedness
(including principal, interest and other sums secured hereby) in such order as
the Beneficiary shall determine. A partial taking is substantial only if it
materially decreases the fair market value of the Mortgaged Premises and the
remainder of the Mortgaged Premises cannot be restored to an economically viable
whole.
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3.4. Temporary Taking. If any Award payable to the Trustor on account of a
taking for temporary use or occupancy is made in a lump sum or is payable other
than in equal monthly installments, the Trustor shall pay over such Award to the
Depository and such Award shall be applied to installments of Impositions and of
principal and interest and all other charges secured by this Trust Deed or due
under the Note, the Loan Agreement, or the other Security Documents as and when
the same become due and payable. Any unapplied portion of such Award held by the
Depository when such taking ceases or expires (if no Event of Default has then
occurred and is continuing), or after the indebtedness secured by this Trust
Deed or due under the Loan and Security Documents shall have been paid in full,
shall be paid to the Person lawfully entitled thereto.
3.5. The Trustor's Obligation to Restore. If all available proceeds of the
Award are made available to the Trustor for restoration, replacement or
rebuilding pursuant hereto, the Trustor shall be obligated promptly to restore,
replace, rebuild or alter any Improvements or Building Service Equipment
affected by a taking so as to restore the Mortgaged Premises to an economically
viable whole, all without regard to the adequacy of the proceeds of an Award, if
any, made available to the Trustor.
ARTICLE IV.
Assignment of Space Leases, Rents, Profits
and Other Income as Further Security, Etc.
4.1. Assignment of Space Leases, Rents, Issues and Profits. Subject to the
Trustor's rights herein, including those set forth in SECTION 4.3.2 below, the
Trustor hereby absolutely, presently and irrevocably transfers, assigns and sets
over unto the Beneficiary all right, title and interest of the Trustor in and to
all Space Leases, if any, now or hereafter entered into with respect to all or
any part of the Mortgaged Premises, and all renewals, extensions, subleases or
assignments thereof, and all other occupancy agreements (written or oral), by
concession, license or otherwise, together with all of the rents, income,
receipts, revenues, issues and profits arising therefrom (the "Collateral").
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4.2. The Trustor's Covenants Regarding Space Leases.
4.2.1. Without the prior consent and approval of the Beneficiary in each
instance, the Trustor will not (a) assign, pledge, hypothecate or otherwise
encumber any of the Space Leases or the rents, income, issue and profits of the
Mortgaged Premises; or (b) enter into any Space Leases affecting the Mortgaged
Premises or any part thereof, unless such Space Lease is expressly subordinate
to the lien of this Trust Deed and to any consolidation, extension, renewal,
recasting or refinancing hereof and the Space Lease provides, in substance, that
in the event of enforcement by the Beneficiary of the remedies provided for by
law or by this Trust Deed, each Space Tenant shall, at the option of the
Beneficiary, enter into a agreement with the Beneficiary which shall provide,
among other things, that (i) such Space Tenant shall attorn to any person
succeeding to the interest of the Trustor as a result of such enforcement and
shall recognize such successor in interest as landlord under such Space Lease
without change in the terms or other provisions thereof, (ii) such successor
shall not be bound by any payment of rent or additional rent for more than one
(1) month in advance or any amendment or modification of any such Space Lease
made without the Beneficiary's written consent, and (iii) such successor shall
not disturb the possession of the Space Tenant provided certain conditions (as
determined by the Beneficiary) have been satisfied, including, without
limitation, that the Space Tenant shall not be in default under the terms of the
Space Lease; or (c) enter into any Space Leases without the prior written
consent of the Beneficiary unless permitted in SECTION 6.21 of the Loan
Agreement.
4.2.2. The Trustor further represents, warrants, covenants and agrees that:
(a) To the best of its knowledge, each Space Lease is (or, when
executed, will be) a valid and legally enforceable obligation of the
parties thereto, in full force and effect.
(b) With respect to each Space Lease and the Space Tenant security
deposits thereunder, any and/or all of such security deposits shall be held
as required by the Space Lease but in no event in a manner other than that
required by law.
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(c) The Trustor shall, at its sole cost and expense, keep, observe,
perform and discharge, duly and punctually, all and singular the material
obligations, terms, covenants, conditions, representations and warranties
of each Space Lease on the part of the Trustor to be kept, observed,
performed and discharged.
(d) (i) Except as herein in this clause (i) expressly provided, the
Trustor shall, at its sole cost and expense, maintain the Space Leases in
full force and effect; the Trustor will not waive its rights under or
materially modify, change, supplement, alter or amend ("Change"), nor shall
the Trustor surrender (whether partial or total), terminate, cancel or
subordinate, any of the Space Leases or enter into any Backlease (whether
through an Affiliate or otherwise), and any such attempted Change,
surrender, termination, cancellation or subordination or Backlease shall be
void, unless, in each case, the prior written consent thereto of the
Beneficiary shall have been obtained. Notwithstanding the foregoing, the
Trustor may (x) terminate any Space Lease under 10,000 rentable square feet
as a result of a default by the tenant under such Space Lease and (y)
consent to any sublease or assignment of any Space Lease under 10,000
rentable square feet provided (aa) such termination is being effected in
the ordinary course of the Trustor's business, (bb) no Event of Default
then exists and no event has occurred that with the passage of time or the
giving of notice or both would constitute an Event of Default, and (cc) the
Beneficiary determines, in its reasonable discretion, that upon the
effectiveness of such termination, assignment or sublease (i) the Loan to
Value Ratio (as defined in the Loan Agreement, and taking into
consideration the value of all of the Projects, as defined in the Loan
Agreement) is not greater than 55%, and (ii) the Debt Service Coverage
Ratio (as defined in the Loan Agreement, and taking into consideration the
loss of income resulting from such termination, assignment or sublease, as
projected by the Beneficiary in its reasonable discretion) is not less than
1.40:1.0. A material Change shall include but not be limited to any
material Change in the amount or time of payment of the rent or additional
rent, the length of term or square footage of the premises under any Space
Lease or any other Change which would materially adversely affect the
Trustor's rights under the Space Lease, or would affect the Beneficiary's
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rights under the Space Lease or the value of the Space Lease as collateral
security for the indebtedness.
(ii) The Trustor shall, at its sole cost and expense, enforce the
Space Leases in accordance with their terms; and shall appear in and
defend any action or proceeding arising to which it is a party under
or in any manner connected with any of the Space Leases.
(e) The Trustor shall deliver to the Beneficiary a copy of each notice
of default sent or received by it relating in any way to any Space Lease
promptly upon, but in any event within five (5) business days after, its
sending or receipt thereof.
4.3. The Trustor's Rights and Powers.
4.3.1. The Trustor hereby irrevocably, in the name of the Trustor or
otherwise, authorizes and empowers the Beneficiary, and assigns and transfers
unto the Beneficiary, and constitutes and appoints the Beneficiary its true and
lawful attorney-in-fact, coupled with an interest and as its agent, irrevocably,
with full power or substitution for it and in its name, but solely for the
following purposes: (i) to exercise and enforce every right, power, remedy,
authority, option and privilege of the Trustor under the Space Leases, and as
such attorney-in-fact, the Beneficiary may subordinate, terminate, cancel or
modify the Space Leases, accept the surrender of the Space Leases, give any
notice, take any action resulting in such subordination, termination,
cancellation, modification or surrender, give any authorization, furnish any
information, make any demands, execute any instruments and take any and all
other action on behalf of and in the name of the Trustor which in the opinion of
the Beneficiary may be necessary or appropriate to be given, furnished, made,
exercised or taken by the Trustor under the Space Leases in order to comply
therewith, to perform the conditions thereof or to prevent or remedy any default
by the Trustor thereunder or to enforce any of the Trustor's rights and remedies
thereunder, and (ii) to ask, require, demand, receive and collect and give
acquittances for the Income (as hereinafter defined), and on nonpayment thereof
to sue for, recover and receive the same, and on payment thereof to give
sufficient releases, receipts, discharges and acquittances thereof; to endorse
any checks or other instruments or orders in connection therewith and to file
any claims or take any action or institute any proceedings which the Beneficiary
may deem to
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be necessary or advisable; provided, however, that the power provided for in
this sentence may not be exercised by the Beneficiary unless an Event of Default
shall have occurred and be continuing. "Income" shall mean all deposits, rents,
issues, profits, revenues, royalties, and other revenue producing arrangements,
whether written or oral, and all monetary benefits of, and/or derived from,
and/or sums payable under and by virtue of the Space Leases and/or the Premises.
4.3.2. So long as there shall not have occurred and then be continuing any
Event of Default and until such right of the Trustor is terminated by the
Beneficiary as provided in SECTION 4.3.3, the Beneficiary will not exercise its
rights pursuant to SECTION 4.3.1, and, notwithstanding anything in SECTION 4.3.1
to the contrary, the Trustor shall have the right (but limited as hereinafter
provided) to exercise all of its rights under the Space Leases, including,
without limitation, to collect and receive all rents, income, receipts,
revenues, issues and profits arising therefrom, provided that the Trustor shall
at all times comply with, observe and perform, in the exercise of such right,
all of the provisions of this Trust Deed and the other Security Documents
applicable to the Space Leases; provided, further, that no action shall be taken
or failed to be taken by the Trustor which would impair the Collateral or any
other collateral security for the Obligations provided for in the Security
Documents.
4.3.3. The Beneficiary, upon the occurrence and during the continuance of
an Event of Default, at its option and upon written notice to the Trustor, shall
have the right to terminate the right of the Trustor to exercise its rights
under the Space Leases, and, thereupon, in addition, the Beneficiary, at any
time thereafter, at its option, shall have the complete right, power and
authority hereunder to exercise and enforce all rights, powers, remedies,
authority, options and privileges of the Trustor under the Space Leases in the
name of the Trustor or the Beneficiary, to enforce all obligations of the other
parties to the Space Leases and to exercise and enforce all of its rights and
remedies hereunder and under law not exercisable prior to an Event of Default.
4.3.4. The Trustor does hereby direct each and all of the Space Tenants
under the Space Leases and all contractual obligors of the Trustor to pay any
Income to the Beneficiary upon written demand for payment thereof by the
Beneficiary without further inquiry. It is understood and agreed, however, that
no such demand shall be made unless an
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Event of Default shall have occurred and be continuing. No such Space Tenant or
obligor shall be obliged to account to the Trustor for any amounts paid to the
Beneficiary by reason of any payment made to the Beneficiary pursuant to such
demand and, upon any such payment to the Beneficiary, shall be pro tanto
released from their obligations to the Trustor with respect to such payment.
Each Space Tenant shall be permitted to rely on any communication from the
Beneficiary pursuant hereto, and under no circumstances shall such Space Tenant
be obligated to the Trustor for any payments made to the Beneficiary hereunder.
Until such demand is made, the Trustor is authorized to collect or enforce or
continue collecting or enforcing such Income in accordance with the provisions
of this Trust Deed.
4.3.5. The Beneficiary shall not have any duty as to the collection or
protection of the Collateral or any income thereon or payments with respect
thereto, or as to the preservation of any rights pertaining thereto beyond the
safe custody of any thereof actually in its possession. In no instance shall the
Beneficiary be responsible to lessees for payment of interest upon, or return
of, any lease security deposits, except as provided by law or as provided in the
leases and then only if and to the extent that such deposits are received by the
Beneficiary. The Trustor hereby waives notice of acceptance hereof, and except
as otherwise specifically provided herein or required by provision of law which
may not be waived, hereby waives any and all notices or demands with respect to
any exercise by the Beneficiary of any rights or powers which it may have or to
which it may be entitled with respect to the Collateral.
4.3.6. The Trustor hereby irrevocably constitutes and appoints the
Beneficiary as the true and lawful attorney-in-fact of the Trustor, which
appointment is coupled with an interest, with full power of substitution, to
proceed from time to time in the Trustor's name in any statutory or
non-statutory proceeding affecting the Trustor or any Collateral, and the
Beneficiary or its nominee may (i) execute and file proof of claim for the full
amount of any Collateral and vote such claims for the full amount thereof (A)
for or against any proposal or resolution, (B) for a trustee or trustees or for
a receiver or receivers or for a committee of creditors and/or (C) for the
acceptance or rejection of any proposed arrangement, plan of reorganization,
composition or extension, and the Beneficiary or its nominee may receive any
payment or distribution and give acquittance therefor and may exchange or
release Collateral; (ii) endorse any draft or other
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instrument for the payment of money, execute releases and negotiate and enter
into settlements; and (iii) execute all such other documents or instruments as
may be necessary or expedient to be executed by the Trustor for any of the
purposes of this Trust Deed; provided, however, that the power provided for in
this sentence may be exercised by the Beneficiary only while an Event of Default
is continuing. The Beneficiary shall have no duty to exercise any of the
aforesaid rights, privileges or options and shall not be responsible for any
failure to do so or delay in so doing.
4.4. Remedies and Entry Upon Default.
4.4.1. So long as no Event of Default shall have occurred and be
continuing, the Trustor shall have the right to collect (but not more than one
(1) month in advance) and retain all of the rents, gross receipts and other
payments, if any, from the Space Leases and from the Mortgaged Premises
generally, and the Beneficiary agrees that customary initial rent payments,
security deposits and reimbursements by a Space Tenant to the Trustor on account
of alterations made by the Trustor for the benefit of the Space Tenant are
permissible advance payments by the Space Tenant.
4.4.2. Upon any Event of Default, the Beneficiary may, but shall not be
obligated to:
(a) terminate the rights of the Trustor referred to in SECTION 4.3
hereof and exercise all of the powers, rights and remedies provided for in
SECTION 4.3 hereof, including those to be exercised only from and after an
Event of Default;
(b) at any time and from time to time, without notice to, or assent
by, the Trustor or any other Person, but without affecting any of the
Obligations, in the name of the Trustor or in the name of the Beneficiary,
notify the account debtors and obligors on any or all of the Space Leases
to make payment and performance directly to the Beneficiary, and demand,
collect, receive, compound and give acquittance for the Space Leases or any
part thereof; extend the time of payment and performance of, compromise or
settle for cash, credit or otherwise, upon any terms and conditions, any of
the Space Leases; endorse to the order of the Beneficiary checks, drafts or
other orders or instruments for the payment of moneys payable to the
Trustor which shall be issued in respect of any of the Space Leases; file
any claims,
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commence, maintain or discontinue any actions, suits or other proceedings
deemed by the Beneficiary necessary or advisable for the purpose of
collecting upon or enforcing any of the Space Leases; and execute any
instrument and do all other things deemed necessary and proper by the
Beneficiary to protect and preserve and realize upon the Space Leases
and/or the other rights contemplated hereby; the Trustor hereby irrevocably
constitutes and appoints the Beneficiary as such the Trustor's lawful
attorney-in-fact, coupled with an interest, and its agent for the foregoing
purposes;
(c) demand, collect, sue for, attach, ▇▇▇▇, recover, receive,
compromise and adjust, and make, execute and deliver receipts and releases
for all Income that may then be or may thereafter become due, owing or
payable with respect to the Premises or any part or parts thereof from any
present or future lessees, tenants, subtenants or occupants thereof or from
any present or future contract obligors; and/or
(d) pay, in such order as the Beneficiary in its sole discretion shall
determine, from and out of the Income collected in connection with the
Premises and/or the Collateral or any part or parts thereof or from or out
of any other funds (less the expense of collection, including reasonable
attorneys' fees and disbursements), any taxes, assessments, water rates,
sewer rates, or other government or other charges levied, assessed or
imposed against the Premises or any part or part thereof, and also any and
all other charges, costs and expenses which the Beneficiary deems necessary
or advisable to pay in respect of the management or operation of the
Premises, including, without limitation, the costs of insurance policies,
repairs and alterations, commissions for renting the Premises or any part
or parts thereof, legal expenses in enforcing claims, preparing papers or
procuring any other services that may be required and any amounts payable
under or pursuant to any Lease; all amounts so paid and expended shall be
payable on demand, together with interest at the Involuntary Rate from the
date incurred until paid, and be deemed to be included within the
Obligations and secured by this Trust Deed; the provisions of this ARTICLE
and the rights given to the Beneficiary hereby shall inure to the benefit
of the Beneficiary even though the Beneficiary does not enter and take
possession of the Premises; any balance remaining after the indebtedness
secured hereby and the other obligations of the Trustor
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under the Loan and Security Documents shall have been paid in full shall be
turned over to the Person lawfully entitled thereto. Neither the entry upon
and taking possession of the Mortgaged Premises, nor the collection and
application of the rents, gross receipts or other charges thereof, nor any
other action taken by the Beneficiary in connection therewith, shall cure
or waive any default hereunder or waive or modify any notice thereof or
notice of acceleration of the Note theretofore given by the Beneficiary.
4.4.3. If an Event of Default shall have occurred and be continuing, a
notice in writing by the Beneficiary to the Space Tenants under the Space Leases
advising them that the Trustor has defaulted hereunder and requesting that all
future payments of rent, additional rent or other charges under the Space Leases
be made to the Beneficiary (or its agent) shall be construed as conclusive
authority to such Space Tenants that such payments are to be made to the
Beneficiary (or its agent). Each Space Tenant shall be fully protected in making
such payments to the Beneficiary (or its agent) and be given full credit against
its obligations under the applicable Space Lease to the extent of payments made
to the Beneficiary (or its agent) pursuant to any such notice; and the Trustor
hereby irrevocably constitutes and appoints the Beneficiary the attorney-in-fact
and agent of the Trustor, coupled with an interest, for the purpose of endorsing
the consent of the Trustor on any such notice.
4.5. No Obligation of Beneficiary.
4.5.1. The Beneficiary shall not be obligated to perform or discharge any
obligation of the Trustor as a result of the assignment hereby effected, and the
Trustor hereby agrees to indemnify and hold the Beneficiary harmless from and
against any and all liability, loss or damage which the Beneficiary may incur by
reason of any act of the Beneficiary under this Trust Deed, other than as a
result of the Beneficiary's willful misconduct or gross negligence and other
than as a result of the Beneficiary's misconduct or negligence after the
Beneficiary has taken possession of the Premises. Should the Beneficiary (i)
incur any such liability, loss or damage by reason of this Trust Deed and which
is covered by the foregoing indemnity, or in defense against any such claims or
demands, or (ii) perform any acts or covenants on the part of the Trustor to be
performed under the Space Leases, or (iii) pay for the account of the Trustor
(other than from Income or from funds delivered to the Beneficiary by the
Trustor to be held in
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trust for such purpose), any and all sums, costs and expenses for the discharge
of taxes, assessments, water rents or other liens against the Collateral or any
part thereof, or on account of insurance premiums or repairs, and also any
amounts and expenses necessary to perform any covenants and conditions to be
performed on the part of the Trustor under the Space Leases, the amount thereof,
including costs, expenses and reasonable attorneys' fees, together with interest
thereon at the Involuntary Rate from the date such expenses were paid by the
Beneficiary to the date of payment to the Beneficiary by the Trustor, shall be
included in the Obligations secured by this Trust Deed, and the Trustor shall
reimburse the Beneficiary therefor upon demand.
4.5.2. The acceptance by the Beneficiary of this Trust Deed, with all the
rights, powers, privileges and authority so created, shall not at any time or in
any event obligate the Beneficiary to appear in or defend any action or
proceeding relating to the Collateral, or to take any action hereunder or
thereunder, or to expend any money or incur any expenses or perform or discharge
any obligation, duty or liability under the Collateral.
ARTICLE V.
Security Agreement Under Uniform Commercial Code
5.1. This Trust Deed shall constitute a security agreement and a fixture
filing within the meaning of the Uniform Commercial Code of the State (the
"Code"), and the Beneficiary shall be deemed to be the "secured party" (as that
term is defined in the Code). The Trustor hereby grants to the Beneficiary, as
additional collateral for the obligations under the Note and the other
Obligations secured hereby, a security interest in and to all of the Mortgaged
Premises which are considered or as shall be determined to be personal property
or "fixtures" (as defined in the Code), including, without limitation, the
Building Service Equipment, the Furnishings, the Payments and Intangibles, all
books, records, licenses and certificates of the Trustor relating to the
Mortgaged Premises, together with all replacements thereof, substitutions
therefor or additions thereto (said property being sometimes hereinafter
referred to as the "Personal Property"). The Trustor agrees that a security
interest shall attach to the Personal Property for the benefit of the
Beneficiary to secure the indebtedness evidenced by the Note and the other
Obligations secured by this Trust Deed and all other sums and charges which may
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become due hereunder, thereunder or under any of the other Security Documents.
The Trustor hereby authorizes the Beneficiary to file financing and continuation
statements with respect to the Personal Property without the signature of the
Trustor, if permitted by the Code. In any event the Trustor covenants to execute
such financing and continuation statements as the Beneficiary may reasonably
request. If an Event of Default shall occur and be continuing, the Beneficiary,
pursuant to the appropriate provisions of the Code, shall have the option of
proceeding as to both real and personal property in accordance with its rights
and remedies in respect of real property under this Trust Deed and the law of
the State, in which event the default provisions of the Code shall not apply.
The Trustor agrees that, in the event the Beneficiary shall elect to proceed
with respect to the Personal Property separately from the real property, unless
a greater period shall then be mandated by the Code, five (5) days notice of the
sale of the Personal Property shall be reasonable notice. The expenses of
retaking, holding, preparing for sale and selling incurred by the Beneficiary
shall be assessed against the Trustor and shall include, but not be limited to,
the reasonable legal expenses incurred by Beneficiary. The Trustor agrees that
it will not remove or permit to be removed from the Mortgaged Premises any of
the Personal Property without the prior written consent of the Beneficiary
except as set forth in SECTION 2.7.2. All replacements, renewals and additions
to the Personal Property shall be and become immediately subject to the security
interest of this Trust Deed and the provisions of this ARTICLE V. The Trustor
warrants and represents that all Personal Property now is free and clear of all
liens, encumbrances or security interests other than the Permitted Encumbrances,
and that all replacements of the Personal Property, substitutions therefor or
additions thereto, unless the Beneficiary otherwise consents, will be, free and
clear of liens, encumbrances or security interests of others.
ARTICLE VI.
Events of Default and Remedies
6.1. Events of Default. The whole of the outstanding Principal ▇▇▇▇▇▇ (as
defined in the Note) and accrued interest evidenced by the Note shall, at the
option of the Beneficiary, become due upon the happening of an Event of Default;
provided, however, that upon the
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occurrence of a default specified in SECTIONS 5.01(f) or 5.01(g) of the Loan
Agreement, or upon the occurrence of any other default specified in any Loan
Document (as defined in the Loan Agreement) where provision is made for
acceleration to occur automatically as a consequence thereof, all sums owing to
the Beneficiary thereunder shall automatically become immediately due and
payable.
6.2. Remedies. If an Event of Default shall occur and be continuing, the
Beneficiary, at its option, may:
6.2.1. by notice to the Trustor, declare the entire principal amount of the
Note then outstanding and all accrued and unpaid interest thereon and all
obligations of the Trustor to the Beneficiary to be immediately due and payable,
and upon such declaration such principal and interest and all obligations of the
Trustor to the Beneficiary shall become and be immediately due and payable,
anything in the Note, the Loan Agreement or in this Trust Deed or in any of the
other Security Documents to the contrary notwithstanding;
6.2.2. as a matter of right and without notice to the Trustor or anyone
claiming under the Trustor, and without regard to the then value of the
Mortgaged Premises or the interest of the Trustor therein, to apply to any court
having jurisdiction to appoint a receiver or receivers of the Mortgaged
Premises, and the Trustor hereby irrevocable consents to such appointment and
waives notice of any application therefor; any such receiver or receivers shall
have all the usual powers and duties of receivers in like or similar cases and
all the powers and duties of the Beneficiary in case of entry as provided in
this Trust Deed, and shall continue as such and exercise all such powers until
the later of (i) the date of confirmation of sale of the Mortgaged Premises,
(ii) the disbursement of all proceeds of the Mortgaged Premises collected by
such receiver and the payment of all expenses incurred in connection therewith,
and (iii) the termination of such receivership with the consent of the
Beneficiary or pursuant to an order by a court of competent jurisdiction;
6.2.3. exercise any and all remedies available to a secured party under the
UCC in such order and in such manner as the Beneficiary in its sole discretion
may determine; provided, however, that the expenses of retaking, holding,
preparing for sale or the like, shall include reasonable attorneys' fees and
other expenses of the
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Beneficiary and the Trustee and be secured by this Trust Deed;
6.2.4. bring an action in any court of competent jurisdiction to foreclose
this Trust Deed or enforce any of the terms, covenants and conditions hereof or
contained in any other Security Document;
6.2.5. elect to commence foreclosure proceedings as follows:
(a) by way of a trustee's sale pursuant to the provisions of Title 38,
Article 38, Colorado Revised Statutes, 1973, as amended, or in any other
manner then permitted by law, upon such notice as may then be required by
law; and
(b) after deducting all costs, fees and expenses of the Trustee,
including costs of evidence of title and attorneys' fees of the Trustee and
the Beneficiary in connection with such sale, the Trustee shall apply, in
the following priority, the proceeds of sale to payment of: (i) first, all
sums expended under the terms hereof, not then repaid, with interest
thereon at the Involuntary Rate, (ii) second, all other sums then secured
hereby, in such order of priority and in such proportion as the Beneficiary
in its sole discretion may elect, and (iii) the remainder, if any, to the
Person lawfully entitled thereto.
6.2.6. exercise any or all of its other rights and remedies provided
herein, in any of the Security Documents, or other document or agreement now or
hereafter securing all or any portion of the Obligations secured hereby, or as
provided by law, in such order of priority as the Beneficiary shall determine in
its sole discretion.
6.3. Sale; No Marshalling of Assets.
6.3.1. In case of a foreclosure sale, all of the Mortgaged Premises may be
sold in one parcel even though the proceeds of such sale exceed or may exceed
the indebtedness secured hereby. The Beneficiary shall not be required to
exercise any rights under this Trust Deed before proceeding against any other
security, shall not be required to proceed against other security before
proceeding under this Trust Deed, and shall not be precluded from proceeding
against any or all of any security held by the Beneficiary for any or all of the
indebtedness secured hereby in any order or at the same time.
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6.3.2. The Trustor agrees, to the full extent that it may lawfully do so,
that in any foreclosure or other action brought by the Beneficiary to enforce
this Trust Deed, it will not at any time insist upon or plead or in any way take
advantage of any appraisement, valuation, stay, marshalling of assets,
extension, redemption or moratorium law now or hereafter in force and effect so
as to prevent, hinder, delay or otherwise affect the enforcement of the
provisions of this Trust Deed or any rights or remedies the Beneficiary may have
hereunder or by law.
6.3.3. If the Beneficiary shall elect to accelerate the indebtedness
secured hereby following the occurrence of an Event of Default, the Trustor,
within five (5) days after demand, will pay to the Beneficiary, or any receiver
appointed in connection with the foreclosure of this Trust Deed, any and all
amounts then held as security deposits under all Space Leases; and the
Beneficiary or such receiver shall be deemed to indemnify the Trustor against
all claims of tenants in respect of the security deposits so paid following such
demand.
6.4. Legal Expenses of the Beneficiary.
6.4.1. The Trustor will pay to the Beneficiary or the Trustee, as the case
may be, on demand, all costs, charges and expenses (including, without
limitation, reasonable attorneys' fees and disbursements) incurred or paid at
any time by the Beneficiary or the Trustee (i) in connection with any action or
proceeding to foreclose this Trust Deed or to recover or collect all, or any
portion of the indebtedness secured hereby; and (ii) in connection with any
modification or amendment or assignment of this Trust Deed or the other Security
Documents, together with interest on each such payment made by the Beneficiary
at the Involuntary Rate from the date of the Beneficiary's demand for such
payment to the date of reimbursement by the Trustor.
6.4.2. If any action or proceeding be commenced in which the Beneficiary or
the Trustee is made a party, or in which it becomes necessary to defend or
uphold the lien of this Trust Deed, all reasonable sums paid by the Beneficiary
for the expense of any litigation to prosecute or defend the title, rights and
lien created by this Trust Deed (including, without limitation, reasonable
attorneys' fees) shall be paid by the Trustor, together with interest thereon at
the Involuntary Rate from the date of the Beneficiary's demand for such payment
to the date of reimbursement by the Trustor.
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6.5. Remedies Cumulative; No Waiver; Etc.
6.5.1. No remedy in this Trust Deed conferred upon or reserved to the
Beneficiary 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 hereunder or now or hereafter existing at law or in
equity. No delay or omission by the Beneficiary in exercising any right or power
arising upon any Event of Default shall impair any such right or power, or shall
be construed to be a waiver of or acquiescence in any such Event of Default; and
every power and remedy given by this Trust Deed to the Beneficiary may be
exercised from time to time as often as the Beneficiary may determine it is
appropriate to do so.
6.5.2. A waiver in one or more instances of compliance with any of the
terms, covenants, conditions or provisions of the Note, the Loan Agreement or of
the Security Documents shall apply to the particular instance or instances and
at the particular time or times only, and no such waiver shall be deemed a
continuing waiver. In any event, no waiver shall be effective, or be asserted by
the Trustor as having been made, unless set forth in a writing signed by the
Beneficiary.
6.5.3. The Trustor waives and renounces all homestead and similar exemption
rights with respect to the Mortgaged Premises provided for by the Constitution
and laws of the United States and of the State as against the collection of the
Security Documents, or any part thereof.
6.6. No Merger. It is the intention of the parties to this Trust Deed that
if the Beneficiary or the Trustee shall at any time hereafter acquire title to
all or any portion of the Mortgaged Premises, then, and until the indebtedness
secured hereby has been paid in full, the interest of the Beneficiary hereunder
and the lien of this Trust Deed shall not merge or become merged in or with the
estate and interest of the Beneficiary or the Trustee as the holder and owner of
title to all or any portion of the Mortgaged Premises and that, until such
payment, the estate of the Beneficiary or the Trustee in the Mortgaged Premises
and the lien of this Trust Deed and the interest of the Beneficiary hereunder
shall continue in full force and effect to the same extent as if the Beneficiary
or the Trustee had not acquired title to all or any portion of the Mortgaged
Premises.
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ARTICLE VII.
Provisions of General Application
7.1. Modifications. No change, amendment, termination, modification or
cancellation of this Trust Deed, or of any part hereof, shall be valid unless
set forth in a writing signed by the Trustor and the Beneficiary, except that
only the Beneficiary need sign any satisfaction of this Trust Deed.
7.2. Notices. All notices, demands, requests, consents, approvals or other
communications (each, a "Notice") given or required to be given hereunder shall
be sent to the addresses and in the manner required by the Loan Agreement.
7.3. The Beneficiary's Rights to Perform the Trustor's Covenants. If the
Trustor shall fail to pay or cause payment to be paid to the Beneficiary in
accordance with the terms of the Security Documents, or to perform or observe
any other term, covenant, condition or obligation required to be performed or
observed by the Trustor under this Trust Deed or the other Security Documents,
without limiting any other provision of this Trust Deed, and without waiving or
releasing the Trustor from any obligation or default hereunder, after giving any
notice to the Trustor required hereunder and after the passage of any applicable
cure periods (or without such notice in the event of an emergency), the
Beneficiary (or any receiver of the Mortgaged Premises) shall have the right,
but not the obligation, to make any such payment, or to perform any other act or
take any appropriate action, including, without limitation, entry on the
Mortgaged Premises and performance of work thereat, as it, in its sole
discretion, may deem necessary to cause such other term, covenant, condition or
obligation to be promptly performed or observed on behalf of the Trustor or to
protect the security of this Trust Deed. All amounts advanced by, or on behalf
of, the Beneficiary in exercising its rights under this SECTION 7.3 (including,
but not limited to, legal expenses and disbursements incurred in connection
therewith), together with interest thereon at the Involuntary Rate from the date
of the Beneficiary's demand upon the Trustor for reimbursement of such sums
until reimbursement by the Trustor, shall be payable by the Trustor to the
Beneficiary upon demand and shall be secured by this Trust Deed.
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7.4. Additional Sums Payable by the Trustor. All sums which, by the terms
of this Trust Deed or any of the other Security Documents (excluding however the
principal indebtedness evidenced by the Note), are payable by the Trustor to the
Beneficiary shall, together with the interest thereon provided for herein or in
the Note or such other Security Documents, be added to and deemed part of the
indebtedness secured by the lien of this Trust Deed whether or not the provision
which obligates the Trustor to make any such payment to the Beneficiary
specifically so states.
7.5. Captions. The captions used in this Trust Deed are inserted only as a
matter of convenience and for reference, and in no way define, limit, enlarge or
describe the scope or intent of this Trust Deed or in any other way affect this
Trust Deed or the construction of any provision hereof.
7.6. Successors and Assigns. The covenants and agreements contained in this
Trust Deed shall run with the land and bind the Trustor, the successors and
assigns of the Trustor and all subsequent owners, encumbrances and Space Tenants
of the Mortgaged Premises, or any part thereof; and shall inure to the benefit
of the Beneficiary, its successors and assigns and all subsequent beneficial
owners of this Trust Deed.
7.7. Gender and Number. Wherever the context of this Trust Deed so
requires, the neuter gender includes the masculine and/or feminine gender and
the singular number includes the plural.
7.8. Severability. If any one or more of the provisions contained in this
Trust Deed shall for any reason be held to be invalid, illegal, or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provisions of this Trust Deed; and this Trust Deed shall, in such
event, be construed as if such invalid, illegal or unenforceable provision had
never been included.
7.9. Usury. Anything in the Note, the Loan Agreement, this Trust Deed or
the other Security Documents to the contrary notwithstanding, the Beneficiary
shall never be entitled to receive, collect or apply as interest on the
principal amount of the Note or any other of the obligations secured hereby any
amount in excess of the maximum rate of interest permitted to be charged by
applicable law. In the event the Beneficiary ever receives, collects or applies
as interest any such excess, the amount which would be
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excessive interest shall be applied to the reduction of the principal amount of
said obligations; and if said principal amount shall have been paid in full,
shall be remitted to the Person lawfully entitled thereto. In determining
whether or not the interest paid or payable in any specific instance shall
exceed the highest lawful rate, the Trustor and the Beneficiary shall to the
maximum extent permitted by applicable law (i) characterize any non-principal
payment as an expense, fee or premium rather than as interest, (ii) exclude
voluntary prepayments and the effects thereof and (iii) "spread" the total
amount of interest throughout the entire contemplated terms of the obligations
so that the interest rate is uniform throughout the entire said term.
7.10. Controlling Law. This Trust Deed shall be governed by, and construed
and enforced in accordance with, the laws of the State of Colorado applicable to
contracts made and to be wholly performed within such state.
7.11. Entire Agreement. This Trust Deed, together with the Note, the Loan
Agreement and the other Security Documents, embodies the entire agreement and
understanding between the parties relating to the subject matter hereof.
7.12. Construction Trust Deed. This Trust Deed secures indebtedness for
construction purposes as described in Section 4-9-313, Colorado Revised Statutes
(1973), as amended.
ARTICLE VIII.
Particular Provisions
The foregoing ARTICLES of this Trust Deed are subject to the following
further provisions set forth in this ARTICLE VIII.
8.1. Limited Recourse. The provisions of PARAGRAPH 6.16 of the Loan
Agreement are hereby incorporated herein by reference.
8.2. Environmental Representations and Warranties. The Trustor hereby makes
the following representations and warranties to the Beneficiary with respect to
the Mortgaged Premises:
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8.2.1. Compliance with Environmental Laws. To the best of the Trustor's
knowledge based on all appropriate and thorough inquiry, (i) the Mortgaged
Premises (including surface and subsurface soil and water and areas leased to
tenants, if any), and the use and operation thereof, have been and are currently
in compliance with all Environmental Laws (as hereinafter defined), (ii) all
required permits are in effect, and the Trustor is in compliance therewith, and
(iii) all Hazardous Materials (as hereinafter defined) generated or handled on
the Mortgaged Premises have been disposed of in a lawful manner.
8.2.2. No Hazardous Materials. To the best of the Trustor's knowledge based
on all appropriate and thorough inquiry (a) no Hazardous Release (as hereinafter
defined) or other Hazardous Activity (as hereinafter defined) has occurred or is
occurring on or from the Mortgaged Premises except in compliance with
Environmental Laws and as has been disclosed in writing to the Beneficiary
("Disclosed Material"), (b) all Hazardous Materials used, treated, stored,
transported to or from, generated or handled on the Mortgaged Premises have been
disposed of on or off the Mortgaged Premises in a lawful manner, (c) no
environmental or public health or safety hazards currently exist with respect to
the Mortgaged Premises or the business or operations conducted thereon, (d) no
underground storage tanks (including but not limited to petroleum or heating oil
storage tanks) are present on or under the Mortgaged Premises or have been on or
under the Mortgaged Premises, except as has been disclosed in writing to the
Beneficiary, and (e) no changes have been made to or discovered regarding the
operations, use or environmental conditions on the Mortgaged Premises since the
date of the most recent written environmental assessment provided to the
Beneficiary.
8.2.3. No Environmental Actions. To the best of the Trustor's knowledge and
based on all appropriate and thorough inquiry, the Mortgaged Premises is not
listed on any local, state and/or federal lists of potentially contaminated
sites, including, but not limited to, the National Priorities List,
Comprehensive Environmental Response, Compensation and Liability Information
System or any state or federal hazardous waste site or leaking underground
storage tank lists, and there have been no past and there are no pending or
threatened Environmental Actions (as hereinafter defined) to which the Trustor
is a party or which relate to the Mortgaged Premises. The Trustor has not
received any notice of any Environmental Action respecting Trustor, the
Mortgaged Premises or any off-site facility to
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which has been sent any Hazardous Material for purposes of any Hazardous
Activity.
8.2.4. Intentionally Deleted.
8.2.5. Definitions. For purposes of this Trust Deed, the following
capitalized terms shall have the meanings set forth below:
"Environmental Action" shall mean:
(a) any notice of violation, complaint, claim, citation, demand,
inquiry, report, action, assertion of potential responsibility, lien,
encumbrance, or proceeding regarding the Mortgaged Premises, whether formal
or informal, absolute or contingent, matured or unmatured, brought or
issued by any governmental unit, agency, or body, or any person or entity
respecting:
(1) any Environmental Law;
(2) the environmental condition of the Mortgaged Premises, or any
portion thereof, or any property near the Mortgaged Premises,
including actual or alleged damage or injury to humans, public health,
wildlife, biota, air, surface or subsurface soil or water, or other
natural resources; or
(3) any Hazardous Activity on the Mortgaged Premises or off-site;
(b) any violation or claim of violation by the Trustor of any
Environmental Law whether or not involving the Mortgaged Premises;
(c) any lien for damages caused by, or the recovery of any costs
incurred by any person or entity, including any governmental entity, for
the investigation, remediation or cleanup of any Hazardous Release or
threatened Hazardous Release on the Mortgaged Premises; or
(d) the destruction or loss of use of property, or the injury, illness
or death of any officer, director, employee, agent, representative, tenant
or invitee of the Trustor or any other person alleged to be or possibly to
be arising from or caused by the environmental condition of the Mortgaged
Premises or any Hazardous Activity on the Mortgaged Premises.
"Environmental Laws" shall mean:
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(a) any present or future federal statute, law, code, rule,
regulation, ordinance, order, standard, permit, license, guidance document
or requirement (including consent decrees, judicial decisions and
administrative orders) together with all related amendments, implementing
regulations and reauthorizations, pertaining to the protection,
preservation, conservation or regulation of the environment, including, but
not limited to: the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act, 42 U.S.C. Sections 9601 et seq. ("CERCLA"); the
Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901 et
seq. ("RCRA"); the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et
seq. ("TOSCA"); the Clean Air Act, 42 U.S.C. Sections 7401 et seq.; the
Clean Water Act, 33 U.S.C. Sections 1251 et seq.; the Hazardous Materials
Transportation Act, 49 U.S.C. Sections 1801 et seq. ("HMTA"); the Emergency
Planning and Community Right-to-Know Act, 42 U.S.C. Sections 11011 et seq.;
the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Sections
136 et seq.; and the Atomic Energy Act, 42 U.S.C. Sections 2011 et seq.
(b) any present or future state or local statute, law, code, rule,
regulation, ordinance, order, standard, permit, license or requirement
(including consent decrees, judicial decisions and administrative orders)
together with all related amendments, implementing regulations and
reauthorizations, pertaining to the protection, preservation, conservation
or regulation of the environment.
"Hazardous Activity" shall mean any use, exposure, Hazardous Release,
generation, manufacture, sale, transport, handling, storage, treatment,
reuse, presence, decontamination, clean-up or recycling of any Hazardous
Material.
"Hazardous Materials" shall mean (a) all substances defined as
"hazardous substances", "hazardous materials", "toxic substances",
"hazardous wastes" or "solid waste" in CERCLA, RCRA, TOSCA or HMTA; (b)
those substances listed in the United States Department of Transportation
Table (49 C.F.R. 172.101 and amendments thereto) or by the Environmental
Protection Agency (or any successor agency) as "hazardous substances" (40
C.F.R. Part 302 and amendments thereto); those substances defined as
"hazardous wastes" or as "hazardous substances" in the regulations adopted
and publications promulgated pursuant to said laws or which otherwise are
or become regulated by any governmental authority, agency, department,
commission, board or
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instrumentality of the United States of America, the State of Colorado or
any political subdivision thereof; (d) any hazardous, dangerous or toxic
chemical, material, waste, pollutant, contaminant or substance
(collectively, "Pollutants") within the meaning of any Environmental Law
prohibiting, limiting or otherwise regulating any Hazardous Activity
relating to any such Pollutant; (e) any petroleum, crude oil, or fraction
or by-product thereof; (f) any radioactive material, including any source,
special nuclear or by-product material as defined at 42 U.S.C. Sections
2011 et seq., as amended or hereafter amended, and in the regulations
adopted and publications promulgated pursuant to said law; (g)
asbestos-containing materials in any form or condition; and (h)
polychlorinated biphenyls in any form or condition.
"Hazardous Release" shall mean the release of Hazardous Materials into
the environment by any means whatsoever, including but not limited to any
spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping removing or disposing
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(including the abandonment or discarding of barrels, containers and other
receptacles containing any Hazardous Material).
IN WITNESS WHEREOF, the Trustor has executed this Trust Deed as of the day
and year first above written.
"Trustor"
CORPORATE REALTY INCOME
FUND I, L.P., a Delaware
limited partnership
By: _______________________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇.,
general partner
By: 1345 Realty Corporation,
general partner
By: ________________________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇.,
President
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State of _____________________ )
County of ____________________ )
On ________________ before me, _______________________________________________
Date
______________________________________________________________________________,
NAME, TITLE OF OFFICER-E.G., "▇▇▇▇ ▇▇▇, NOTARY PUBLIC"
personally appeared __________________________________________________________
NAME(S) OF SIGNER(S)
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal.
Signature_______________________________ (Seal)
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EXHIBIT A
---------
PREMISES
LOTS 2 AND 3,
FLATIRON INDUSTRIAL PARK FILING NO. 5,
COUNTY OF BOULDER,
STATE OF COLORADO,
AND PART OF LOT 4, FLATIRON INDUSTRIAL PARK FILING NO. 5,
DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF LOT 4, FLATIRON INDUSTRIAL PARK FILING NO.
5, A SUBDIVISION OF A PART OF THE WEST ONE-HALF OF SECTION 27, TOWNSHIP 1 NORTH,
RANGE 70 WEST OF THE 6TH P.M, BOULDER COUNTY, COLORADO; THENCE NORTHEASTERLY
38.78 FEET ALONG THE ARC OF A CURVE TO THE LEFT AND ALONG THE WEST LINE OF SAID
LOT 4, AND THE EASTERLY RIGHT-OF-WAY LINE OF CENTRAL AVENUE, TO A POINT OF
NON-TANGENCY, SAID ARC OF CURVATURE BEING CONCAVE WESTERLY AND HAVING A RADIUS
OF 665.50 FEET. A CENTRAL ANGLE OF 03 DEGREES 20 MINUTES 19 SECONDS AND A CHORD
WHICH BEARS NORTH 21 DEGREES 47 MINUTES 48 SECONDS EAST 38.77 FEET; THENCE SOUTH
90 DEGREES 00 MINUTES 00 SECONDS EAST 335.64 FEET TO THE EAST LINE OF SAID LOT
4; THENCE SOUTH 00 DEGREES 00 MINUTES 00 SECONDS WEST 36.00 FEET ALONG SAID EAST
LINE TO THE SOUTHEAST CORNER OF SAID LOT 4, AND THE MOST NORTHEASTERLY CORNER OF
LOT 3, FLATIRON INDUSTRIAL PARK FILING NO. 5; THENCE NORTH 90 DEGREES 00 MINUTES
00 SECONDS WEST 350.04 FEET ALONG THE SOUTH LINE OF SAID LOT 4 AND THE NORTH
LINE OF SAID LOT 3 TO THE POINT OF BEGINNING, AS SET FORTH AND APPROVED IN CITY
REVIEW CERTIFICATION RECORDED MAY 19, 1987 IN FILM 1475 AT RECEPTION NO. 850261.
COUNTY OF BOULDER,
STATE OF COLORADO
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