HomeMy WebLinkAboutCherry Lane Recreation Inc. Lease MemoOffice
of the
City Attorney
To: Mayor Corrie
From: Bill Gigray, City Attorney
Re: Cherry Lane Recreation, Inc
Date: September 10, 1999
Lease
200 E. Carlton Ave. Suite 31
PO Box 1150
Meridian ID 83680-1150
Phone: 288-2499 Fax: 288-2501
E-mail: wfg@wppmg.com
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have been advised by Mr. Gerry Mattison, of the Idaho Independent Bank, that
the City is requested to sign an Acceptance of Lessor, which is a Schedule C to a
"Leasehold Deed of Trust". I found a copy of a draft document Leasehold Deed of Trust
in the file but it had been placed with the material associated with the "Memorandum of
Lease Agreement", which we prepared for the purpose of establishing for the record that
the Lease Agreement concerned the entire 18 holes. I never saw any directive from
either the Bank, or Cherry Lane Recreation, Inc., that the City was to execute any such
document so I did not review it.
am enclosing a copy of the Draft "Leasehold Deed of Trust and Schedule C for
your review. This document purports, as is characteristic of Deeds of Trust, to establish
Pioneer Title Company as Trustee for the benefit of the Bank, with the power to sell,
enter and take possession of Cherry Lane Recreation, Inc.'s interest in the lease in the
event of default. This document is designed to secure the performance of a Line of
Credit of $500,000.00. Note in part (b) of section 1 "Obligations" it provides: "all other
present or future written agreements with Lender which refers specifically to this Deed of
Trust (whether executed for the same or different purposes than the foregoing);..." This
section also provides for any guaranty of obligation or future advances which this Deed
of Trust is referred, and even provides for the amounts of advance under this Deed of
Memo Re: Deed of Trust Golf Course -Page 1 of 2
The City of Meridian -Idaho's Initial
Point of Beginning
Trust to not exceed $1,000,000.00.
In section 2 of the Deed of Trust, subsection (f), it provides: "Grantor is the owner
of the tenant's interest under the Lease and there are no defaults thereunder. Grantor
has good right and lawful authority to grant and convey its interest in the Lease and the
granting of this Deed of Trust is not in violation of any provision of the Lease."
In section 18 the Lender, in the event of default; could enter upon and take
possession of the golf course, employ a management agent of the Property and let the
same, and/or foreclose on the leasehold, which would invoke a sale of the leasehold.
The Schedule C is an agreement and consent of the City to this Deed of Trust
arrangement.. It requires that the City, in the event of a default of the Lease Agreement,
must give 60 days notice to the lender, and the City agrees to subordinate any lien it may
have or subsequently acquire upon the chattels of Cherry Lane Recreation, Inc. The
acceptance also has a provision that the City is benefitting from this arrangement.
The Agreement of Lease dated the 3rd of October, 1978 provides at section 14
"ASSIGNMENT AND SUBLETTING, Lessee shall not assign, transfer or sublet this
lease, or any portion thereof, or any privilege hereunder, either voluntarily or
involuntarily, without the prior written consent of Lessor, which consent shall not be
withheld unreasonably; except that Lessee may assign its right, title and interest in and
to this lease agreement with right of reassignment, to its lender and to a Meridian local
development company." This language is not clear, and I do not at this time know why
this is in the Lease Agreement. It does appear that there was contemplation regarding
assignment to a lender.
ADVISE OF PROPOSED ACTION: This matter has never come before the City
Council and because the Agreement of the Lease, and any permission to sublease or
assign requires permission of the City, I recommend that the Council consider this at its
next meeting.
CONCERN: This will place a lien on the leasehold and could provide for a lien in
the amount of up to $1,000,000.00, as written, which could be the result of other
advances and/or loans to Cherry Lane Recreation, Inc.
have enclosed a copy of the Deed of Trust and the Schedule C for your review.
Z:IWorkIMlMeridian 15360MICherryLane Land ExchangelMayorCherryLnRecLease091099.Mem
Memo Re: Deed of Trust Golf Course - Pag~2 of 2
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Ater Recordation Retum to:
LEASEHOLD DEAD OF TRUST
In t~rtdderidlon of the loan or other erodh aooorrettodefkn heralneiar ePegfletl arld • ' .., .
arty future advaneaa or ltrhr/s Obllgadwts, w dyjnsd haisln, .
wnleh:mry faroefter be advanced a Inounsd end the trust hsroinafW memlened and other good and valuable ~Idefal{on,.yrq..raoeipf pod,.
euffldenry of which are hereby eeknthvledp sreby it 'n sells prsrtts,. eomroys and aasipns.m.Tnretee, hla
suCCeetOfa and aaslprta< In tout, for .
the benelldary under this Deed of TNSt, with power of sale and hr of o f 1?nge~"'
Sotteduie A (Ihe 'Lsace'); Duch leasehold estea ~ rroY end poeuaston all of Grantor's Interest in that eertalrt Iseep rjaearibed an
anemartts, heradamen antl a bektg iOOro°d ~ the IsrW deaerlbed In SehaduN B tihv 'Iin0~ tepethar wiN au ptperrl and.future
at ppurtenances: and 1M rsverdons, remainders, rvnu and profits pawning to tiro rey property.; Qtwrltrlatlvely,
"Property'); a: have end to hold the PropeAy ytd the llgMa hereby grontetl far Ou use end benefit of Tnuae,, hb !urze=soro and aatttgrta, unN
paymerttln fop of a110611gatlona sewed Mroby.
hbroever;.In~Mthrrr:aonslderaoon, Grsrttor dace. for Grantor and Grantor's heirs. ropreavntatiws, atrrxessora,~and' .,. ,tnri.... .•:~.:. ~.
wartarrt, cowoent. and agree vriUt lsndu and Tn+etee end their suaS007ors end ~ e~~y"
easigns as follows:
i. O!lI.IGAT10N8 Thia Deed of Trust shall own the paymard antl pertdrmana of aU present end future Indsbfednses, Aabpitle0. t>bUpatlane •and ;
covenarta of Borrevrer or Grantor (oumdetivey'Obugatlone') to lender purauard to: :. , u ,.,....
•~ (e tlAe Oeed of 7ruet end the feflowing prom nave end other reemerrtr. .. ~ ~ ~ ..
.... ~, . ; . w~.vv77~
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(b) dI WAer roe ,, '..' i. .... •, ..:....
P Mt m future wdtan agreements with fonder which refer spaafically to Mls Dud at Trust whalAer exeerMd_(ar yta,aam• aR
~.~ ; . W tferartt purpoNe than the fwapolhp);
(c) . any yuaronry of obligadons of otMr parties gh,en tc Lander now or hereafter exewttia which rs/ero to dtls Dead of Trait; ., , .: ~ y
~. ~ (d) future advaneea, whether ebllgatory or o ,. ~ ~~ ,. .
Trust, made or maendod to or on bohaM of (3rapnmr or fogortoewEe~m~ int. as N meda oontsmparaneously widf tM.exewtlon of Ihla Dead o}
.:.. Deed of Trust shall wrtdnw until agrees tltat ft ono of the Obpgatlona~ie a Ilne of asdiL the pen.ef.this
paymem in lull of ap tlebt due under tM pna.notwhhetendinp the foot that horn 8nro.tc drtte. (but before
..temrinstlon of.the IUw) no balmroe may bo ouLetertdinp. At no Uma all the pon oPthla Ossd of Trust not Including amounts advartptl to
.:... protect the aeeurlry of thL4 Oeed Of TNS[, exceed t---L.r..4QQ_; and ,.~., i ,
a,.: (e) all amendments. extenatona, rsnewds, mod'dindona, replaeerrwma of wW1iWGpns to any of the foregoing. ~ .
Aa used !n this Paragraph 1, the arms Grorna and Borrower shoo Include and alas mean any Grsrttor or aortbwer If more than one..: ~ .. . ~ ..
2 LAEPRESENTATIONB, WMRANTIR.S AND COVit1ANT6. Grenror repreeems, warrants end oovenarde to Candor met:. ,, , :'
.. . (a).' l3rernarshell ttiakttsln the Property ((a• of all Uern, seeurhy Imaasts, enwmbrsnua and dolma except for this Deed of TruaCend~~lhose.
,, tlesalbed In Schedule C whkh Its attadted to 1Ma peed of Trust and Incorporated herdn by referortce, whkh Grenta agrees tc pay'end'
. 'perform in a tkhely manner, ,,.
. ~ ,;(b); (irarnor Is In~oomplfance in all reapeots vAm all apppoaDle federal, afate end local laws and repulatlorts, In .. i.:.'• ,' ~"~ . .
clud'vig;'v+tlioltt 1knMation, those •
,. : nlaAn9.lo,'fiszafdoua fdaadala; ae defined heroin. and other srnironmemal, ritstters (ttte '1§tvironms}ttal lavw7, angrtialther Ihe,fetlersl'
P party, nor u then where the Property is iocsatl nor arty other govemmerrtal of quasi goveminenta amlry:haa lpsq'a pen qn the,
. aritor s k ~' governmental, judeial or ttdminlatrative ectlorts wllh reapeet to enutronmgrttal rtaRHa pengrrpr e f to the bagj o1 the
.''~~"Gu~req,,penerat ~ro~kased~~. which inwNe ms Property. NNttlsr Grants nor. m tfw best M Grantor's knowlbdgP,~q,~1y ottisr pert'' hu
~~.:n., arged, stand, Or dlapOSatl Of arty Huatdoua Afabrtals as daflrwd hereto, kl COMedIOn wgej' pre. Property or.
.traneportsd any Hazardous MaarWe a or from the Properly. Grantor ehdl not commit or pennK ouch actloris to Ae'tekert'In thrfuh,re: The'
r:i.~R ')iazaidoue Malerlals' chap meae arty eubattatce, materi.l, ar wasa whkh ia'or becomes reputatetl by enY'1iow+nrttenal;autlloflry~
Including; but not limtted lo: (A patrolsum; Pq hlabis or rwnMable ubeetoa: (lln tychlorlnaad tNphertyls; (N) those substances, rnatsfle)a;er~
wesui deeignataa as a Tezardous subatence' pursuant m Section 311 of the l~van YYaar Act a hated purouxtt to
Watw pet or any amendments or replacemems to Ihaee statutse; Section 3QZ tN th~Pean.
J ~ (y) thow aubeeone•e, matsdais er wastes' deflrnd u T ~azardajrrYryypq,
; ;,purauvitlo Srletioh toW of ute Reeourea CeneeNetfon and Recovery pat or any amendments or replat:emans to the( alaerr;'orjd °(vn ttioaa'
., subaaltees, maagam or wsabes daAned m a 'hazeidow eubatsnos' pursuant to Saatlon 101 at the Comprehensive ErrYl . N;
Campatlsatkm and liadury Act, a arty runendmente or y ~ ~~ . ~_ .
u' ~.:~ • rePlacamenb to that ataerte or an other slmder slate or federal r+gy~aiwn`
.or mdinanae now or nereaAar in effect 'Grenror shall not lease or penult the aubleeee of the Progeny m a tshant or
aperetlons may ntwh In conaminadon o} tlfe ptOP~y veldt Hazardous tNatedale ortoxlo substances; w ~.ubti~^t,C;'h°s°'
~(c) All applicable laws and reguladons Intludlnq, without Umhatlon, the Amerkx+ns with Olsabltltiee AcL 4:!'U.$.C,f72701,~~1,4~ (and~aq
.regulatltxu promulgaad mrxeuntler) end atl zoning and lwAdlreg Iowa end ragulaUOna rdatinp to the Property by'virtu4,of.mry federal, ataa or
munldpal authority with jurfedietian over Uio Property, prsseMy are anq shat{ brr abseryetl antl compiled with jh N!'matsilal rsapeCta: and atl
,,.,i.rlphte; Ilwnsea, permla. end eertilltnlee of ocwpancy flnduding but not pmitad to zonlnp veriuoaa,apecial•axoeptbrn (or nonoonfortning'
.,,, yses„arM Ana! napaet}an approvNa), whemsr Lmponry or permanent, wMM aro matsrlels to the use and ocarpency of fie'
presamly ere end shall be abtalnetl, preserved and, whom neoeaSary, renewed; ~~'
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(d) Grantor has the rtphl and la duty authorized to execute and penorm its Ohllgallona under Mia Ueetl of Trust and lhaas actions do net and
shall not wrtlllcr with Me provisions of any trawls, regulation, wdinenes, rule of taw, contrail or oNer agreement which may tee bintling on
Gramor at any time; i
(e) No acllan or prooeatling Is or shalt be gentling or Hreatenad which might meleAalty affect the Property;
(}J Grantor is the owner of the tenant's inlerac under lM Lease end Ihefe sro rto detautls Hereunder. Grantor has good dpM end lawful
auNtorlly to grant and convey Its inure W In lne Leese and the granting of this Oasd of Trust is net In vloutien of any prwlslon of the Leese;
(gS Grantor Witt exetrse aN renewals of the Lease unless Lender approves of the non-renewal and wiN furnish proof of payment o} any Lease
obligations of Grantor upon rsquasl of Lander, and
(h) Grantor has net vWlated and shall not violate any statute, regulation, ordinance, rule of Inw, conuad or other agreement (nauding, but not
limited lo, those governing Hazardous Motanals) which might materially affect Ina Property or Lender's rights or interest th the Propeny
pwsuant to this I].ad of Trust.
7. INQUIRIES AND NOTIFICATION TO THIRD PARTIES. Granor hereby aulharizes lender to wntid any third party and make any'Irtqulry
ponalning m Gromo['s Ilnandal wrtditbn err He Propeny. In addtlbn, Lender is autharized to provide oral or written notlce o1 its Interest In the
Property to any third party.
4. TRANSFERS OF THE PROPERTY OR BENEFICU4L INTERESTS IN GRANTORS OR BORROWERS. In the event o1 a sale, conveyance, lease.
contract for deed or Irarrsler to any person o! all err any part of Me Property, any of Grantor's interact err rights under Ina Loose, or any Interest Herein,
err of all or any Dsnefldd irrterest In Borrower or Gramor [t Borrower or Grantor is not a natwal person or parsons 6ul Is a wrporaUOn, parenershlp,
roar, or other legd enUry), Lender may, al Its option, dodare the outalandlrtg prindpal Aalanr~ of the Oellgatletw plus accrued inlorest Maroon
Immadialaly duo and payable. At Lender ~ requesR Grantor Of Borrower, ea the cote may be, Breit fumish a wmplels statement sailing forth dl of Its
slockholdero, mambori or partners, as appropriate, and Me extant of tfteir rospedive owner-.hip Interests.
5. SUBLEASES AND OTHER AGREEMENTS. Grantor shill not take or 1e11 tb take arty acUOn which may cause or permit the tennlnaUon w the
withholding of any payment in txnnetsbn~ with arty suDleaae a other agraemenl ('Agroement') pertaining to Me Properly. In addition, Grantor,
without Landar'a prior written wnssm, shaft not: (n) collect any mortise payable under any?greemem more roan one monM In advance; (h) modify
any Agreement: (c) aeeign or elbw a Gen, eacuray Intersal tx abler enoumbronoa to be placed upon Grantor's Aghls, title end Inlereaf in and to any
Agreement or the amounts payable Hereunder, or (d) terminate or r~rtcel any Agrsemenl except for the nonpayment of any sum or other material
Meech by Ho aHer party Herslo. !1 Grantor receives st arty Ume eery wrltun communMaUOn acsening a default by Grantor under an Agroement or
purparMg lo. terminete , or rAncel any A9raernenL - Grantor ~ shall ~ promptly forward a copy of wch wmmunication (and any aubsequanl
wmmunladans rotating Merato) to lender. All such Apreementa and He amounts duc to Grantor uereunder era hereby assigned to Lender as
additional security for the Obttgatons. '
s. COLLECTION OF INDEBTEDNESS FROM THIRD PARTY. Lender shall be entitled to notify or require Gnnlor b notify any third party (induding.
but not limited to, lessees, licensees, povernmemd outhoriliaa and Insurance wmprnlosl to pay Lender any indoblednssa or ohllgatlan owing to
Grortbr vriM rocpoct tb He Property (amulaUvely 9ndebtedness') whether err not a defautl exists under His Deetl of Trust Grantor shall diligently
ral{ect the Indebtedness owing b Grantor from Hasa Hind pufios untU Nte giving el such notlficatlon. In the avant Mat Grantor possesses err receives
posaasdon o} eery Incwments or otlta rominances with reapeot b the Indabtednesa fdlewing Me gluing of such neb'fieatlon of it the Irtalrurnents or
outer ramlttencp wnatitule He prepayment of any Indsbtedneu w He paymem of any Insurance or condemnaUOn proceeds, Grantor chap hold
such Inerrumsms and other rominanras M wet for Under apart from its other property, endorse IM inaVUmenla and offer nmitlaneea to Lender,
end lmmedlatNy provide Lender aiM poasesslon of the Inevuments and othw romlttences. Lander shill be antltled, but not required, to totted (by
legal prgeeedlrigs or olherwlae), extend lhs Ums for paymortt, oompromite, oxcnange err release arty obligor Or collateral, err otherwise settle any of
tM Ind~btednpa wfteHer err not en Event of DelaWt exists under Ihls Deed of Trust Lsnd.r shaU'nol be liable to Grantor for any ectbn, error,
mistake, omiaeien err delay pertalning to the azUOns described in His perepraph err arty damages rpurting Menlrom. NotWilhslandlrtp lhs forepoing,'
nothing herein shall cause Lander to be deemed a mortpagestin-possosslon.
7. USE AND MAINTENANCE OF PROPlRTY. Grantor shall take aA adions and make any repairs needed M mdnialn Ms Property In good
wndhlon. Grantor shell not wmmN or permd arty waste to De wmmletetl wIM roapoct to M• Propeny. Grantor shill use fns Property aolNy M
wmpllenra with epplleable law and Inwranee poUdes. Grantor shall not make any alterations, addltlona of Impravemems to Me Propeny without
Lender's prior wriden consent tMlhout IimlNnp He fOreg0lrtg, dl dlefaNenA additions and tmprovlmanla made 1e He Property snail tee wb(ect to
Iha beneNdal Interest belanging l0 Lender, shaft not be removed without Lendefa prier written consent, and shall W made at Grantor's solo expanse.
g LOSS OR OAMAGE. Granlel shall beer 1M entire risk Of any loss, Meft, deaWeaen or demeps (cumulatively -Loss or Damage') to the Propeny or
any portion Utereol from arty scup whatsoever. N the event of arty rasa or Oanwge, Grantor shall, at He option of Lender, ropalr UN affected
Prdperty 1e its previous wndltlon or pay or rouse to be paid le Lender the deueasa In t1w tau mukst vstue of the effected Property.
9..INSURANGE. The Propeny will be kepi Insured tOf Its full Insurobb value (roplatxmaM cosh aganst a6 hazards Indudktg bas err demeps caused
by flood, eanhqualto, tornado and Ore, 1M1t nr other casualty to My extent required by lender. Grantor may obtain ktwrance on fns Propeny tram
such wmpenlea as sro aowptable to lender In its role discreUOn. Tree inswartca potictw snarl require the Insurance mmpeny to provide Lander with
al feast days' wriwn notice beforo ouch polldes ors eltmd or cancelled in any manner. Ths Insunna potldes coati name Lander
es a loss payee and provide that no ad or omleslon of Grantor or any oNtar parson chill attxt the right of Lender ro be paid Me Insunnry proceeds
pertainlrtp to the lose or damage of the Propeny. M Ho event Grantor falls to acquire or melnrein insurance, Lander (alter providing notice as may bs
requtrod by law) may In ffa diaereUon proouro approprlala Insurartw Beverage upon the Propeny and the Insurance wet shall be en advance payable
and bearing Interest as deewibed in Paragraph 22 and scoured hereby. Grantor shau furntsh Lender will evidence of Msurance IndeaUrtg the
required coverage. Lander may act as attanay.ln-tact for Gremor In maMnp and ulWtg dalmc under Inswancr poUdee, cancelllrtg any poNay or
enderalnp Granor's name on any draft or nepogable Instrumerd drawn by any inattrer. Atl such insurance polklea shall 6e Immedlelety aaslgned.
pledged and delivered b lender as further socunry to the Obllpatkfns. In the wont of lost. Gramor shell immediately gNe Lender written notloe end
lent]sr Is authorlied to make greet al loss. Each inau,•anc6 tAmpany le Ulreoled to make payments draztly to Lender Instead of to Lando and
Grantor. Lander sltdl have the right al Its soli option, to apply such monisa toward the ObNgalbns er toward the oral of rebutlding and rplartng the
Property. Any amounts may et lender's option be eppaea in Me Irwerse groar~oi He due Betts tharaol.
10. ZONING ANO PRfVATE COYENANY3. Grantor shah nor Inltlate or wnsent to ar+y dtanpe {n the zoning prwlsbna or private covenants allecting
Me uas of Me Property vrlHwt lender a prior untllen consent, tl Grantor's use o! tM Property bewrnes a noneoniaming use under any zoning
Provlaion, Grantor shall not cause or permtt such up to be tllswnUnued to abandoned rvrthoul He prior written wnsent of Lender. Grantor wilt
Immediately provide Lender vAH wdgan noNCa of any proposetl changes to Me zanhtp provisions or priveu wvanants a(leding the Propeny.
1t. CONDEMNATIOPL Grantor shall immediately prtwido Lender wIH written noNee of arty actual or Mreatened condemnation or emlrtent dorneln
prornd'mg pertaining to Me Propeny. Atl monies payable to Grantor boor such eondemnaUon or taking sro hereby assigned to Condor and stall be
applied flit to He paymem or Lender's atlemeyi tap, legal expenses end other w:a (Including apprnlaal foes) to connxtbn with the
condemitaaion or eminent domain poreedlnps and Men, at the Option of Lender, to Me payment el the Obligations W Hs reetnrallon or repay or the
Propeny.
12 LENDER'S RIGHT TO COMMENCE OR DEFEND LEGAL ACTIOP/S. Grantor shah hnrttedlalely prevlde Lender wish wrlUen rrotke of any adual
or threatened action, suit, err athu proeeedlrtg aReeting tM Property. Grantor hereby appants Lender u Its sttorrnyJn•faa to wmmand, Imervena
in, end defend such edlons, sulfa, er etltor legal proceedings and to wmpromise or settle eery claim err wntroversy penalning Hereta:'tarttlsr shell
not b^ Gable to Grantor for any eeUM, error, mistake, omlaslon or delay psrldning fo the azUOns described In this paragraph w arty damages
rosultlnp Haretrom. Nothing wntalned heron wiN prevent lender from taWnp the aztlons described In this paragraph In Its awn name.
13. INDEMNIFICATION. Lender shall trot assume or M responslbb far the penormanee of any of Grantor's rtbUgallone will respect W the Propeny
under any d[eumstances. Gramar shill Immedltttely provide Lender wIH wrltan notlce of and Indemnify end hold Lander an6 tta shareholtlere,
directors, ottlcero, employees and agents humleaa from all ddme, damages, fiabtlitie6 Qncluding etlorneya' face end legd expenses), causes of
setien, aotbns, Bulls and other legal proceedings (cumulatively 'Claims'y pendnMg to the Property {ineluding, but hoe Nmited to, theca Inwlving
Hazardous Materials). Grantor, upon Hr raqur-t of Lander, shall hire lagd wunsel b daf.nd LMder ham such Clslme, and pay Mr aUwneys' fees,
legal expenses end ether costs tnctuted In connedlen therovrith. In Ms alternative; Lander shill be entltted to employ Its own legal coumel to delsnd
wch G1dms ^t Grantor's cost. Gramor'e obllgaUon to indemnNy Lender under this paragraph anatl wrvlva the lermination. release or forodwwe of
this Oesd of Trust.'` ` ' ' ~~
14. TAXES AND ASSESSMENTS. Grarrlor shall pay all taxes artd assessmeme ralatlng to Me Property when due and Immedlafsly provide Lander
eWdence at paymerrt of eam4. Upon Ma rogwal of Lender, Grantor shall deposit will Lander each month enatweffH (t/12) of Me eaUmetod annual
Insurartca premium, taxes and a7aepmenta penalnutg to He Prep.rly. So long w there Is no default, these amounts shall be app6ad l0 Ma payment
of texas, aaaecemants grid Inaurartw p requlretl ort Me Property. In the event of de1wlL Candor shall have the right at Its sob opUen; to apply He
funds so bald to pay any taxes or against the Obligatons. Any funds applied may, at Lender's option, be applied In reveae order of He due date
ttwroot.
15. INSPECTION OF PROPERTY, BOOKS, RECORDS AND REPORTS. Grantor shall albw lender or Its agents m examine end Inspoot the
Propeny end examine, inspect foil make copies of Grantor's books end rewrds pertaining to the Property from Nmn to time. Grantor chill provide
any asslstanes ngtilrad try Lender for Lhasa proposes. Alt of the signatures and information wnlalnod In Grantor's books end roeoms shall ho
genuine, true, awurate end mmpbts In all rsspecla. Grantor shell vole the exlatena o} Lender's benelldd Imereat In Its hooka end rewrda
partaWng to H• Property. Addltlonatly, Grantor shall report, In s Corm aatlslaolory to Lander, wch informatlon as Lender may request regardlnq
Grentor'a Hnendal condlNon or Ute Preprrry, Tits iMormatbn shall be for such periods. shell rrftocr Grantor's records nt such Ume, and ahnll ba
rendered with ouch froquancy as Lender may deslpnate. All Intormadon furnished by Grantor to Lender shalt be Vue, accurnts and complete in all
rospeds, and signed by Grantor If lender requests. '
18. ESTOPPEL CERTIFICATFS WIHIn ten (10) days alter any request by Lander, Grantor shall deliver b Lender, or any Intended ttensferea of
Lender's rights with respect to the Obligatons, a signed and acknowledged atatsmonl spedfying (a) the tlutatanding Dalanp on In• Obligations; and
(b) wfleUter Grantor possesses any dolma, defenses, selolle ar oetrmardaims wIH raepaM to the ODIIgellons antl, it so, He nawro of such Balms,
defenses, sat•otte or ceunlerdalnts. Grantor will be canduslvely trotatd by an reproaenlatlon that Lender may make to the Intended transferee with
rospsd b these matters In He event Hal Grantor lads to provide He requested stalentanl In a timely manner.
unsraxm.n rw,..niwn r.n.~anxe:. one. p forest (eaq ear•srw ors. i d o
17. EYE14T5 OF DEFAULT. An Cyertt of Oetault shall occur under tAia Oeed of Trust and Ne Ttusttb's power shah become opentlve In the eaeM
Ihat Grenmi: Bortovnr w any 9wranmr of arty Obligatlon: ~.. .. _ .
.. roll6 to Pay any Obligatlon to Lander when due: ~.. ..::..:.: ~:"^ : ~- '•. `. ~ ~~ c ~''.~, ,..
. ° • ~b~ . fahs m perform any Obllgtttlon or OreaaAea any wttrnrtry ar covenant to Lender aontalrrod In this Geed of Trust er arty atnet preserd or
future agreement; .., .. :.~..::.•..., . ~ ,.:.,:. .
(ej deriroys, Leese or damages the Property m AnY mamrial reepea or srrbjeda the property to eelzure; donfleeatton m eortdsmrtetlon; ''' ~ " ''
. (d) aeeka m revoke, termMab or othenrfav Ilml! Its YaDlgly under arty guarenly to Lander, ~ , .. r, :.t::.. ,. -,,.:_....,. ',: ', +:
(•) din. become Iegdly inwmpriem, la dlaaaMd w terminand, betxtmss Insolvent, makes an asalgnment ter the besets of aedltora, loge
... to pay debts m they Hacorne des, Gm a petltlon under 1M federd bankruptcy Leda, has an kwWurtury patltlon In bertkrupuy INed Ift whkfi, :.:
Granmr, Renewer a arty guarantor is nomad, er ftaa property taken under arty writ ar prow:< 01 court; :.
~:. (I) . asaws pooch to be used, trtrrtsported or strxed m tfte ProPxry, the poeeeasion, treneportation, or use of whidt, is ilbgal: ,r, ~: :. , : .
(g- eUowa arty party GCter than Grartlor or Borrower m acaume ar undertake any Obligation wiUlout Ute wrltun consent of Lender, or, i ...~ ~, .
(n), tausea Lender in deem ttsed lnseaun due to a signMeant tleclkw In tnv value of the Property, or tender. In good feipl,, tor, ary rvaaon"
+. beUevea that the proaped of paymem or perfamanoe Is Impaired.
t& . RIGHjS Of LENDER ON EYENT Of DEFAULT. Upon tM ooounence of an GreM o} Default under this Owed o} Truri,.Lendef ef1aH bq wtlipsd
in exerUae one or more of the mllawing romediea wiMoul notice or demand (except sa required by law-:
. (s) tD deflate tlts ODllgetlona immedlatery des and payable M foil, ouch acaloratlon ahatl be aWOmatlc and Irtxnidlpta~)t~ttii Event o1
Defsyit is a f~ing under 1M Bankrtrptcy Code; .: ' " ':.
(b) m ducat tM eutsmndlrrg ObligaUaq wltA or wkhout resortlrtg to judidal'procetw: .:. , n .:.., ¢.,i I,, . ~• : ,.. , ~
"~.
(e)„ to rvgtrin, Grantor m deliver and make available to Lender any personal property or CAeheb conetkutlng'tne• Plopeity et a piece
reasonably pagwnient in Grltrrior and lender, .. , .• .. ... ..... '
,, ., (dj master upon and tale possession of tAe Property wAtltout applying for or obhlning the appolrttrrteM of a receiver and; ri Lertder'a'
"opgan, m appokd a receiver without bond, without flret bringing cwt on the ObltgaUona and without otherwise meetlng eny'statvtory
condiflorn regarding recelvera; It bsMg Inttmded IAat Lender shall Rave tAls mrnnearal ngM m appoint a reoelver,
tte), m empmy a managing agent of the Property and IN the acme, a1tMr In Truttes'a own name, In the name of Under orln'the Hama of `"
' Gronmr, and reralvs the rents, Incomes, Issues and proflh of the Property end apply the soma, attar paymwrt of all necvnaty charges and
~'.`expenaes, oh eccourtt of ttte Obligaiona: .. ... .
,' .;" (tJ, m pay any atone In any lam a trunrnr dnmed expedient by Lender m pread the eeeurity of this Deed of True or m curs any default '
other than paymerk of intereri er prinopal on the Obagalbns; • • .. ~ , ~ ~ ~ ~ ~ ~: ':: ,.::.
(g~ in }orecbea Mls Geed of Truri ludidatiy a nonltrdldally; _.,..,.. -. -.. ,
-~• (n to.eetoft.GroMOYS Obligatlom agaktri any amourds owed Grarrtar. by Lender including, but not Gmltsd tp, monlpa. Inetrtlmarth,'~.end
depoak aeeounb maintalrnd whh Lsndar a any ounentry existing or future elflluu of Lender; and ., ~ ~~
,• (p m vxercae all tnAvr righh nvallabb m Lander under any other wAmsn agreement or appNeable law.
Lender's dgtrts aro cumulative end may be axeroieed together, sspatately, end in arty order. In the ewM Utet Lartda In=tltirtei an~egflori sesldng the
rocowry, d NY o1 the Property by way of a pre-udgment remedy In an aoUm egainri Grantor, GraMOr waHes tfie poating'oF any Ltond WAieh mlgM..
otherw4s by nqulrW. Cantle or lertdsr'a designee Inay purcpam the Property at arty cola. Tha Property or arty part thvrwt mpy pe sold In one
partlel,.or,nt,stlM parceh, manner or order as Lender N lb sole dlsaetion rtta)r shot, and one or mon.axarolsee al itw paw tanlq granted rgiaN not.
rrxhnguieii r# oahouri rho potter unlace tM entiro Property la sold or 1M' Obltgatione ore paid In full. -'
18. LEASENOIDPROVIStONS. ... ~,,::`~.~ -.; 't`'.~
(e) Granmr agrsea that Grantmr wNl Umely parfonn all obGgationa of tareMef ands the lease and that k will not lakte•m tirttit~to tales :njr'
acton whkh wdl cause s default thereunder a tint with World or slur tM passage of tkne, or Noah, would be a defauk thereunder. Grarkor
agrees dial It will promptly noUry Lentler In wntlnp d any doreun Dy Grainer under ptv Lvasv and that k dal prompty aertd m the Landes any
notlee (abler than on a regular periodic Danis mr montnry rent paymema) from the LanoWro under the Lean, Indtrding any ndta rtetlng or
claiming arty default by the Grantor under tM Lease,
(bl Lander shalt haw the rent to cure any default under the Lease vrlihln me tlme permuted In the lease and all sums advenoed thereby
shell be Immodlahly duo and payobU with 4tterori thanes at the Inver of 1M hlgheet rob deealbed in any Obligation or 1M tdgltael rats
allowed by law from tM date of payment until tM date of ramtnesemtmt end shall, ingather with such Interest, baoems a part of the
ODligatidnc
(c) In w.e of an GreM of Dsfauk under Paregnph 17, in addition m arty otMr righh and romedlee avaNabM, Lander may make full or parUal
payrtwnte of rent due under 1M Lease, pvAorm any trtiter oDNgatbns of Gnnmr under Ute l.eeae end~purohass, dlscltargs, wmpremise, er
settle tfle lens. Nt maniac paid for arty of Me 'purposes herein auUtedzed end alt expense paid or Incurted In orxtneetlon 1Mtewlth,
Indudk+g stterneye' fees, m tM extent permitted by appliahle law,.she4 t» ao much additional indebtedness trocvred hvnby, and shall
become immediahry des and payable without notice and with interest tAwean. Inaction of lender shall new ba eonsldered as s vvalwr of
any ngnt eacnring m It on aoeount of any dafauh on Ute pan of Grants.
(d) Pny detauk on tM part of Grantor undo tM Leos shall conetnute a driault under this Dsed of Trust end the Obllgsdona aeoured Mnby
end shell erttltle the lender to axardse any end ell ngMS end remedies given Mraunder.
(e) Grantmr will not amend or modlly the lease without the prior wntten oatsent of Lander.
20. MEAGER OF FEE 1N LFA9EHOLD ESTATE N tM avant that Grantor acquires 1M fee Utle or ttrry other estate, Utb or Interest in the pramlaea
oovervd by the Leans, thin Owed of Trust shall attach to and cover end ben Den upon the fee Utle or sutit etha snub so acquired and audt fns tHls or
other estate sAa11, whhotri funhsr asalgrunsnl grant or wnveyana become and ba cub(eot m the lion or ertwmDVrad by Chia Owed of Toast
21. SECURITY INTEREST UNDER THE UNIFORM COMMERCIAL CODE TMa Dowd ohTruri shall t>a axtsidered • fktartdng statement end a
fixture flgng pursuant to the provlslona of the UnNorm Cemmarcld Cods (oa edepnd by the state when the Property Ia boated) eeverlrtg flzturea,
ohat0ele, end artifice of pereortd property now owned or hereehar attnched to or m be usstl M mnrnctien with the ProPertY togelhtx whh any end all
nrolawmerds thereof and additions titersto (tits 'Chadela'j, and Gramor heretry grants Lender a aeourrty irttervat In aucn CAalub. Ths debtor b the
Grantor desatbad above. TRs secured parry ie tlts Lender deeoribed above. Upon demand, Grantor shalt make, exearte and Wliver wen e.ct,nry
agrnmaMS (m audl term is defined in said Uniform Commerdat Coda) ss Lander at any time may doom necessary w props or regain to grant in
Lender a perfected seouriry Inmreat In fife CnatttNV, arttl upon Grerkor'e taeure to do so, Lender la auUtodzetl m algn any each agreemem as the
agent of Grantmr. Grenmr Mroby atkhorizee under to file flnendng shuntenu (as such hrm w defined In said Unlrorm CommercJat Codv) with
rasped m the Chattels, ri any Wte, whhout the signature of Grarkor, Grants will, however, at any Uma upon requeri of Lender, sign at+eh ilnenoing
staMmeMa. Grantorwill pay all fiiirtg fees for the Hang of suCt 1lnanoing sutemente and for the refdtng thereof at the Umss required, in tAe opinion W
Gender, by sekf lNkam Cammerdal Code. M the Gen of this Ooed of Trust b subject to any secukry agroemvnt oowring tAe Chattels, than In tAe
evarrt of any default under thla Deed o} Trust all the right, tltle antl kttereet of Grartmf in entl to any and aN of me CnalMts U hhroby aea~rnd to
Lender, togther whA the tlenetk of arty depoaib or paymerds now or AereaRer made lhereot by Graninr or the prcdnstton or weeenon In UUs W
Grantor In 1M Property.
22. REIMBURSEMENT Of Ab10UNTS ExPENDED BY LENDER, Lander, of untler'e optbn, may expend ftgtda Qnduding 1Nmmsye' free and
legal exQar~o~) to perform arty act required m be taken DY Grantor a ttl exerolse any dgM or remedy of Lender under thta peed oPTtttR. Upon'
damartd, Grantor shall ImmerJdkisly roimDurw Lender to ell such amounts expanded by l ender togaMer wltlf tntetest tMrsen at tlte~ Io~wi of the'
hlgheet ram deseritted In any Obllgnflort er tAe higtteel rate allowed DY uw from the elate of payment untB the data of retrrtbursertwnt. Thsae sums
eftall be Mdvded in tM deflnltron of Obligatlons harsh and shah be second by the bvrteflcfal inlvreri grentsd herein. I(1M ObltgeUone aro pald,atter
the heglnrUng of puDlkatlon of nonce of sale, as httroln prnvleed, or N the evsrtt Lander snnll, sf Its soh opda~ pertnk Grantmr m pN nY P~ a tAe
Oblipatlena slur 1M baglnning of pubGcstiort of series of sale, as herein prodded, 2Mn; OnMOt shad poy on demand stl expenses Incurred by the
Trustee and lender In wmeoUon tvltlt sold publkaUort, Induetng reemneple attorneys' foes m the attomsya forUte Trueue end for the lender, and a
reasonable fee m the TrurHee, and tlUs Geed of Trust ehrl Ne aeeurity for alt writ expenses and fees.
27. APPLICATION OF PAYOAENTS. Ati paymann made by or on Dehak of Cxarttar may be appUed against the amounh paid by Landes prtdtrdlrtg
alinrnvyi feva and legal vxpvnsn) in connection with tfro sxadse of its ngAta ar romedige deaaiDed Ih ttW Dasd of Trues p,,rtd then. t4 (fie payment .•: :. ,
of the temalnktg OWlgauona In wftatever order Lender cnooees.
2e. POWER OF ATTORNEY. Grartmr heroby eppoinb Lender es ib atlomeydnfitd m ertdarss Grertmr'a name on ail Instruments and atAu
documairts pertaining in tM Obligations w Deed of Trust In addition, Calder shall be entitled, but net repotted, in poitorm any salon or extuute
arty doeumem requtled m be taken or executed by Grenmr under tMa Oeee e( That untlvr'e permrmance of such action or exacuden .of each
documents shall not relieve Gnrtmr from any ODIIgaUen w wro any de}auk under this Owed of Trust. OJI powero of attorney aaErlbed In'thlr Geed o1
Truri a» coupled with an Intersri lord sro irtewcaDle.
2S. SUBROGATION OF LENOFJL lender shall ba suerogatad m tAe Aghte of tM holder of any prMous Ilrn, seoudry Inunst or eneumbrenco ~~
tlltthuged wltlt funds advMeed by Lender regardtsas of whether these liana, asarily inurests or outer srtcumttrarteoe hove been rvloaevd of record.
2B. COLLECTION COSTS. To IM exuhl pumktad bylaw, Gnnmr agrees to Pay Lender's rsaaonaDW fees and costs, lnalutling, but not Umlted to.
tees end wets cf aftomeya mtd oNer agents pneluding without Gmiution paraisgds, derka end oonaultanla), whethw or not each edomey or spent Is
on employee of lender, whitdt are incurred by Landes in wlfvcting arty arnouM due or enforoing any right or remedy under thla Deed of Trust,
whvlher or sat auk Is brought, indudlnp, but not limited to, aU tea arM cwh inwrrod on appeal, 7n bankruptcy, and for post~udgment cogealon
aouona. , ..... ~. ,,.
27. PARTIAL RELEASE lender may release its inteest in a portion of Me Property by executing and roeordlrtg ens or mote partial release without
aftectlng Its Interest In the remdning paths of tM Propety NotMng MraM ahatl be deemed m obligate Lender in rehasa arty of Ira Interest M the
Pfeperty (except as requksd under Pereg/eph 367, nor shell Lender be obligated m release arty part of the Property If Grantor Is In delault undo/ Mle
Geed of Tnrst
20. MODlF1CAT10N ANO WAIVER. The modMicatlon a waiver of arty of Grerrtor'a OWigaUons or Lender's fights under this Deed of Trust moat ~,ur, i
aontelnad In a writing signed by Lander. Lender may perform any of Borrower's or Grenta'a l7biigationa, del~r or }ail m exerdn any d Ne righh or
accept paymenn from Grarkor or enyons other then Grartinr without causutg a waiver of those Obligations w rights, A detest on ono oxaslort shall
not conttlDtn ^ walwr on arty odor oxaclon. Gnntw'c Oblgations under thla Oovd of True shall not by affected k Lender amends, wmpromlaes,
exdtangaA tape m exerdee, Impalro or robeses arty tlf tM Obllgatlona belongtrtg m any Grainer, Borrower or third parry or any of ha Agnh agalnet
any Grenar, Borrower or thkd Pury er ri+Y of tM Property. LendaYs lalluro m Inskt upon avid performance of any of tM ODylgntiona shall not be
dssmtrtl a delver, end Lender shell bees the right at any tlme tMreaha m Inebt upon cold per(ormanee.
ultst6ttx:'~ r~aMw,-: r.~r,neieyia, ~ (t t/s/a9 loop 0]7.7700 ~ - ., .; ~,:... ~.,
ry0~ 7 W e
29. SUBSTl1'UTE TRUSTEE: kt anse of the death, IneblYty, reluaal to act of absence of the Trustee Irom the stets wham ttu Property li IoeaLd rx In
case the holder of flu Obtlgatlons shall dndn tar any mason to remove the 7ruetee or any eubstlltrte huslae ea Ituates herotmder and to appont a
maw trustee N hla plow and alead, the holder o} the OWtgetlans to hmby gnnbd lull power to appoint In wrhing a substiluro busies br eeld Trustee,
and Iha eutialHule trusroe atoll. when appointed, twrnrtta ouraaooor 1a atl dgnla of Tnrsfee hereunder and the aetrn tltatl became vested N him tar
the purposes and ob)eda of this lhed of Trua1 with all the power, dutlee and obligatlerta herein cenldrred oh Ins Truetes.. "
70. SUCCE390R8 AND A9310NS. TMs Geed of Ttuaf ahdl bs 6lndfng upon end inure le the bensgt of Grantor and Lander and Ihdr reepecUvo
succsmra; aselgna; truaseea; nceMro, adrnlnlauaton, parsontl roproaentatlvea, legatees end devlseea.
31:' NOTICES; '61cept es'olherwlae requtrod by taw, arty notlce rn other Qemmunkatlon to bs provided under mN OeW d Trust shall Da kt writing
and sort to the pertlee at the eddrossee described kt tf11B Geed of Trust or soon odter eddtess es the panlaa may designate In wrttlng from time to
time. Any auoh notles sb given and sent by gnt class mall, postage prepaid; tthdl tie deemed given Ilse eerller at three (3) days after such notlw la
sam or when redWad by the person m whom cunt noun la being plven. . ~ ., ~ .. ~ ~ .. ~ ~ ~ e: :':i
32: SEVERABIUTY:' Whenbrer possible, each provision at this peed of Trust eheU be InterpreHd to be vdld and enlorcaeble under oppikabla stela
law. Many provision o! tftls Oeetl of Ttvstviclates the law or Is unorforcesble, the vast of Ihls Geed of TArst eheU oontlntro to bs valid ehd enfdrceable.
37:`APPLtCABLE LAW. This Dead of Twt shall 6e gavamad by tM laws cf IM state where fife Prdparty la located. Unless'appUdtib lati/'provldea
otnenvlse, Grantor rattsents to the )udstlletlon end venue of eny.eourt elected by Lender, In Its rota dltroratlon, located In that etas. ~~ ~• • •
76, NO THIRaPAfiTY RIGHTS. No parson Is or shall ba ^ Mlyd-paAy bsnefidery of any provision of 1h1a Geed o} gust All provlslona of tills peed of
True! N favor of Lander ere Intended solely tar lM bertefit of LBrldar, and no thkd party ahaA Da enUtlW fo assume or expret that Lander veto waNe or
oonsmn to ute madifieeuon of arty provision of this Oaed of Trti]L in Lender's sole dlecretlon. • ~ '
35. PAFSEAYATION OR LIABILITY AND PRIORfl'Y. UNthout aifeatlng tM Ifabifily al Bonowr, Cxanlor, rn any guarantor of the ObWgetions, or any
otnar parson (except a parson expreaaly rakpaed In wrhlrtg) for the paymont snd pertarmann of tM~Obllgationa, and without a(fectlng Ins dgh» of
Lender with rasped to arty Property not exprossly released N wrflMg, and wilhcut Impairing in ri~ty way tM priority of INs Geed of Trust over the
Intorast of pity person aoquued or ffrot evidenced by recording aubaequent to rho recording o! this Oesd of Trust, Landrir may, altha Cefars ar after
the maturity of uts Obligatlorw, and wldtout notlw a sanssnL• rofeass prey parson Ileble tar payment or performance o} atl or srry par! of the
ODllgetlona;.meks arty agnernem dNdng the tsnns W payment or parbrmanw of all w any part of the Obllgetbna; axerdse or n}rdn from
exerdslrp ar waive arty right rn remedy that Laredo may maw under Ih4 Geed d Trivet aCept additional mauhyy of any kind for any of the
Obligatlona; or rsleese or othervtisa deal whh arty real ar personal property eaeudng Ihs Obllgauorts. Arty person acpttlring or recording evldenoe oI
arty kdereat of any nature In the Properly smell be deemed, by ecqulrlrtg such intorost or retarding any ewdertea tltereol, to have consorted to dl m
any 5vM actlata by Lender. ,
7e.' OEFE/~SANCt?. Upon tM paymem and periwmenca in full al ah of Ue QEltgaaona, Lender wlx execute and dNMr to Drenlw those documents
Ihat may tw requlrod tc reieaav this Oeed of Trust of record. Grantor shop Oa rseptrrslDle to pay arty rata of recerdatlon.
77, MISCELLANEOUS. Grantor and Lender agree that tlms Is d the essence. Grantrn weiv^a preantment, demand for pnymerd, notice al
dlsFtonor end protest ampt as rsqulrad by law. All nfenncea to Grantor N into Died of Trust shad lnduds W peracna clgning below. It mere b'
mom than one ftrlntbr, thsk Obllgagons shetl ba (oMt and several. This Oeed of Trust represents the complete Inlsgraled underslnndlrp between
Grortor and Lender portalnMg to the forma and condltlwte hereof.
7e. dURY TRIAL ~IIAIVER. LENDER AND GRANTOR HEREDY WAIVE ANY R16HT TO TRIAL BY JURY IN ANY CIVIL ACTION IRISINO OUT OF, `
OR BASED UPON, THIS DEED OF TRUST.
39. ADDfTiONALTERMS.
/., _ ~ ,
Grantor aoknowletlpea that Grantor has read, undoratanda, and agree to the terms and eondltlone of thla Deed o/ Trust and aCknowledgea receipt of
or axaat copy of same-
.., . _.,, ~-.,.,, ,....:,..'... c~u, ~y / 9 ~ C7 .. ,..
Doled lnld "' ' '~:~:,:,;::.:r."~ dray of .. .. ..
, Gtr r ~ I i. ~ ~ ...
GRANTOR .lJ^ ~ .,• ly, L.a NP Ql.cx r JN Lv\L GMNTOR .. - .... ~ : r, ,; ~. ;•.., ;..,
i .. ,~ i
~. , .
GMNTOFL' .GRANTOR- ~ .. ...
, . ~, .
OMNTdit'f. ~ .. ~ GRANTOR: ..
i..
,.
GnNiTOfI' "• ~ ~ GflANTOfl: ~ ... ., '
•fAai]7e7 n ce.,..,uo„ Teer,neYMIC., vK, 111!'+!981 180PI iF77~7799 Pege ~ d e
ACCEPTANCE OP LE99Op C.,
Thh acaplanw h aasculed IMe ~ ~ ~ 4 ~ / , Dy Ihs undere+gnad ee Leewr under the Vase
dasal0ed on Sonadub A
I. Lessor agrees and oonaenle la Grantor's Qrant and eaelgronenl to Lender under Ihle Oaad of Trucl of Grantor's Inlaasl u Ienanl under Ihs leaes,
Lesam repraaenu tl1e1 tl» t.use la cwrantly wtld and oMmoaabls aaording W lu terms and Ihel Grenlor h not preaeNry In ddauU under UI• Laus.
Lessor lurlhar rsprsuMS Ihal n h the Owner or flN Inrad premlwa end Ape lufl power end wNoray to mIN IMe IAh Agreement.
2 Lnsw agrwa gist during UU Urm of Uda Deed of Tnrsl, no modlflonlom to or lerminadon o! the Lease w1U ba undertaken without Oral oWelning
Ure written tonaenl of Lender.
1 In Ne ewM of Dranlw'e delaull under the Lease, l.aaaor agrees to notify Lander of sudt deleull M writing al Isul alsry {601 Jaye prior to Islrlrrg
eollen to enbrce any of Lessor's rlpAh under Ufa Lsue. Oudng Vile sDUy-day ported, Lender shell Irava IM opllan to aue the defeutt ar udre such
olha( eodon as may be nseeseary b protest lender's eeourlly Inlsnal In IAe Leass end any Chslteh al Grantor under IAb Desd M Trual or arty ocher
agreement Oahresn (Lawlor end Lander.
~. Lessor agree la subordlnele erry flee II msy haw or wbsegwnUy aoquhv upon any Clullels of Grenlu wllldl mey he wDlaal to any security
Inlaeel of Lender unW wolr tlma n Ihls Dead of Trust Is lsrmfnrrlsd.
6. Lessor eeknowiadgss Utel II hu end will benegl v e mull of Ihs ananelal aecommadsllons selendsd to 3ranla by Lender and Ihel lender will
rely on Urs eooeplencJJa. ~A_ ~r L /j/,~,~~ y~ ~~l
LE39On: C) ~ Y dblfa P.~ 7 ~ ~ LEaaac (^I ' y ~ /ir "ice r!R •/'/V
,haycR:. ~~, - ..... - -- .
-~. Q.. Cl~,cik.. ~ .....,
TIIIS DGCUMENT WAS PAEPAREO BY: fDNp 1 ~~
..._.._AFTEfl''f1EC0ADIND RETIIAN TO LENDEfi AT ITS ADDAE66 DFSCIUBED ABOVE PAGE 5 OF 6
;;..,
~~ ~,.. .
~~ . ,
yl ~ ~ ~ . _
Tha following.dooalbid reel~proprrly leuled In the Counly of , Slalo of __ .
~Q ~ _ _
.$irHED .
......._ r ........................ ,... ~.. w..q w~.n nv ,u.n PACE 6 Ot° 6
** TOTAL PA(~ , GJ6 ~c«
Nu-Pacific Company, Inc.'s conveying to the City of Mer-
idian per the agreement between those parties dated
~cfobc.Y .~ 1978.
12, COMPLIAPICE WITH LAW. Lessee, at its sole
expense, shall comply with all laws, orders and regulations
of federal, state and municipal authorities, and, at its sole
expense, shall obtain all licenses or permits which may be
required for the conduct of its business within the terms of
this lease, or for making of repairs, alterations, improve-
ments or additions, and Lessor, where necessary, will join
with Lessee in applying for all such permits.
13. SURRENDER AND TERMINATION, Lessee shall, on
the expiration, or the sooner termination as herein provided,
of this lease, surrender to Lessor the leased property,
including all buildings, replacements, additions and improve-
ments constructed or placed by Lessee thereon, with all
equipment in or appurtenant thereto, free from all liens,
encumbrances and subtenancies and in good condition and
repair, reasonable wear and tear excepted,
Upon termination of this lease, Lessee, its suc-
cessors and assigns, shall at all times execute, or cause
to be executed, all necessary documents required to surrender
leased property, including all buildings, replacements, addi-
tions and improvements constructed or placed thereon by
Lessee, its successors and assigns, with all equipment in
or appurtenant thereto.
14. ASSIGNMENT AND SUBLETTING, Lessee shall not
assign, transfer or sublet this lease, or any portion thereof,
or any privilege hereunder, either voluntarily or involun-
tarily, without the prior written consent of Lessor, which
AGREEMENT OF LEASE - P. 6
consent shall not be withheld unreasonably; except that
Lessee may assign its right, title and interest in and to
this lease agreement with right of reassignment, to its
lender and to a Meridian local development company.
15. RENEWAL. Lessee shall have the option to
renew this lease, on the same terms and conditions, for an
additional term of thirty (30) years, provided Lessee is
in full compliance with all of the terms of this lease at
the time notice of intent to renew is given Lessor. Such
notice of intent to renew shall be in writing and mailed to
Lessor at the City Hall, Meridian, Idaho, on or prior to
April 1, 2003.
At the conclusion of such renewal term, Lessee shall
have the further right to renew this lease, on terms and con-
ditions agreeable to each party hereto, for successive addi-
tional terms of ten (10) years each, provided Lessee is in
full compliance with all of the terms of this lease at the
time notice of intent to renew is given Lessor. Such notice
of intent to renew shall be in writing and mailed to Lessor
at the City Hall, Meridian, Idaho, on or prior to six (6)
months prior to the end of any term.
16. GREENS FEES. Lessee agrees that it will not
alter the greens fees charged the public without first con-
sulting the authorized representatives of Lessor, it being
the intent of both parties to the lease that greens fees
for the leased premises shall at all times be competitive
with similar public facilities.
17. BINDING EFFECT. This Agreement of Lease is
binding upon the successors, assigns and subtenants of both
parties.
AGREEMENT OF LEASE - P. 7