Document:

Open-End Deed of Trust, Assignment of Leases and Rents (Photo Research Inc)

 EXHIBIT 10.5 

DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, 

SECURITY AGREEMENT AND FIXTURE FILING 

made by 

PHOTO RESEARCH, INC. 

(Trustor) 

in favor of 

FIRST AMERICAN TITLE INSURANCE COMPANY 

(Trustee) 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 

as Collateral Agent 

(Beneficiary) 

Property Location: 

9731 Topanga Canyon Place 

Los Angeles, California 91311 

Dated as of July 23, 2010 

This Deed of Trust Was Prepared By and When Recorded, Return to: 

Schulte Roth & Zabel LLP 

919 Third Avenue 

New York, New York 10022 

Attention: Gregory P. Pressman, Esq. 

Ref. No.: 035064.0001 

 TABLE OF CONTENTS 

 

					
	 	  	Page
		
	ARTICLE I DEFINITIONS	  	2
	  Section 1.01	  	Terms Defined Above	  	2
	  Section 1.02	  	Definitions	  	2
	  Section 1.03	  	Terminology; Other Defined Terms	  	5
		
	ARTICLE II GRANT OF LIEN AND SECURITY INTEREST	  	6
	  Section 2.01	  	Grant of Lien	  	6
	  Section 2.02	  	Grant of Security Interest	  	6
	  Section 2.03	  	No Obligation of Beneficiary	  	6
	  Section 2.04	  	Fixture Filing	  	6
	  Section 2.05	  	Future Advances	  	7
	  Section 2.06	  	Advances Secured by Deed of Trust	  	7
		
	ARTICLE III ASSIGNMENT OF LEASES AND RENTS	  	7
	  Section 3.01	  	Assignment	  	7
	  Section 3.02	  	Revocable License	  	8
	  Section 3.03	  	Enforcement of Leases	  	8
	  Section 3.04	  	Direction to Tenants	  	9
	  Section 3.05	  	Appointment of Attorney-in-Fact	  	9
	  Section 3.06	  	No Liability of Beneficiary	  	10
	  Section 3.07	  	Trustor's Indemnities	  	10
	  Section 3.08	  	No Modification of Trustor's Obligations	  	11
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	  	11
	  Section 4.01	  	Title to Trust Property and Lien of this Deed of Trust	  	11
	  Section 4.02	  	Taxes and Other Payments	  	11
	  Section 4.03	  	Power to Create Lien and Security	  	12
	  Section 4.04	  	Loan and Security Documents	  	12
	  Section 4.05	  	Compliance with Laws	  	12
	  Section 4.06	  	No Condemnation	  	12
	  Section 4.07	  	Flood Zone	  	12
		
	ARTICLE V AFFIRMATIVE COVENANTS	  	13
	  Section 5.01	  	Lien Status	  	13
	  Section 5.02	  	Payment of Impositions	  	13
	  Section 5.03	  	Repair	  	14
	  Section 5.04	  	Insurance and Application of Insurance Proceeds	  	14
	  Section 5.05	  	Condemnation and Application of Condemnation Proceeds	  	16
	  Section 5.06	  	Maintenance of Rights-of-Way, Easements, Licenses and Other Rights	  	17
	  Section 5.07	  	Payment and Performance of Obligations	  	17
	  Section 5.08	  	Compliance with Permitted Liens and Other Obligations	  	18
	  Section 5.09	  	Additional Affirmative Covenants	  	18
		
	ARTICLE VI NEGATIVE COVENANTS	  	18
	  Section 6.01	  	Use Violations	  	18
	  Section 6.02	  	Waste	  	18
	  Section 6.03	  	Alterations	  	18
	  Section 6.04	  	No Further Encumbrances	  	18
	  Section 6.05	  	Transfer Restrictions	  	19
	  Section 6.06	  	Loan and Indentures; Additional Negative Covenants	  	19

  

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	 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES
	  	19
	  Section 7.01	  	Event of Default	  	19
	  Section 7.02	  	Acceleration	  	19
	  Section 7.03	  	Foreclosure and Sale	  	19
	  Section 7.04	  	Trustee's Agents	  	20
	  Section 7.05	  	Judicial Foreclosure	  	21
	  Section 7.06	  	Receiver	  	21
	  Section 7.07	  	Foreclosure for Installments	  	21
	  Section 7.08	  	Separate Sales	  	22
	  Section 7.09	  	Possession of Trust Property	  	22
	  Section 7.10	  	Intentionally Omitted	  	22
	  Section 7.11	  	Remedies Cumulative, Concurrent and Nonexclusive	  	22
	  Section 7.12	  	No Release of Obligations	  	23
	  Section 7.13	  	Release of and Resort to Collateral	  	23
	  Section 7.14	  	Waiver of Redemption, Notice and Marshalling of Assets	  	23
	  Section 7.15	  	Discontinuance of Proceedings	  	24
	  Section 7.16	  	Application of Proceeds	  	24
	  Section 7.17	  	Uniform Commercial Code Remedies	  	24
	  Section 7.18	  	Indemnity	  	25
		
	 ARTICLE VIII
	  	25
	  Section 8.01	  	Duties, Rights, and Powers of Trustee	  	25
	  Section 8.02	  	Successor Trustee	  	26
	  Section 8.03	  	Retention of Moneys	  	26
		
	 ARTICLE IX MISCELLANEOUS
	  	26
	  Section 9.01	  	Instrument Construed as Mortgage, Etc	  	26
	  Section 9.02	  	Performance at Trustor's Expense	  	26
	  Section 9.03	  	Survival of Obligations	  	27
	  Section 9.04	  	Further Assurances	  	27
	  Section 9.05	  	Notices	  	27
	  Section 9.06	  	No Waiver	  	27
	  Section 9.07	  	Beneficiary’s Right to Perform; Beneficiary’s Expenditures	  	27
	  Section 9.08	  	Successors and Assigns	  	28
	  Section 9.09	  	Severability	  	28
	  Section 9.10	  	Subrogation of Trustee	  	28
	  Section 9.11	  	Entire Agreement and Modification	  	29
	  Section 9.12	  	Applicable Law	  	29
	  Section 9.13	  	Satisfaction of Prior Encumbrance	  	29
	  Section 9.14	  	No Partnership	  	29
	  Section 9.15	  	Headings	  	29
	  Section 9.16	  	Release of Deed of Trust	  	29
	  Section 9.17	  	Limitation of Obligations with Respect to Trust Property	  	30
	  Section 9.18	  	Inconsistency with Indenture	  	30
	  Section 9.19	  	Limitation on Interest Payable	  	30
	  Section 9.20	  	Covenants To Run With the Land	  	31
	  Section 9.21	  	Amount Secured; Last Dollar	  	31
	  Section 9.22	  	Defense of Claims	  	31
	  Section 9.23	  	Exculpation Provisions	  	32
	  Section 9.24	  	No Merger of Estates	  	32

  

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	 ARTICLE X STATE SPECIFIC PROVISIONS
	  	32
	  Section 10.01	  	Power of Sale	  	32
	  Section 10.02	  	Trustor Notice Address	  	33
	  Section 10.03	  	Co-Borrower Provision	  	33
	  Section 10.04	  	Limitation of Obligations	  	35
	
	EXHIBIT A - LEGAL DESCRIPTION

  

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 DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, 

SECURITY AGREEMENT AND FIXTURE FILING 

THIS DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (hereinafter, together with any and all
amendments, supplements, modifications or restatements of any kind, referred to as this “Deed of Trust”), is made as of July 23, 2010, by PHOTO RESEARCH, INC., a California corporation, having its principal place of business at 9731
Topanga Canyon Place, Chatsworth, California 91311-4135 (“Trustor”), to First American Title Insurance Company, a California corporation, having its principal place of business at 1 First American Way, Santa Ana, California 92705,
Attention: Deed of Trust Department (including any successor trustee at the time acting as such hereunder “Trustee”), for the benefit of THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, having its
principal place of business at 525 William Penn Place, 38th Floor, Pittsburgh, Pennsylvania 15259, Attention: Leslie Lockhart, as Collateral Agent (in such capacity, together with its successors and assigns, “Beneficiary”), for
itself and for each of the financial institutions and their respective successors and assigns which from time to time shall be a “Holder” under the Indenture (as hereinafter defined). 

R E C I T A L S: 

WHEREAS, Trustor is the owner and holder of fee simple title in and to the Land (as hereinafter defined) described on Exhibit
A attached hereto and made a part hereof; 
 WHEREAS, on the date hereof, GSI Group Corporation
(“Issuer”), Trustor and the other Guarantors (as hereinafter defined), entered into that certain Indenture, dated of even date herewith (as the same may be amended, modified or otherwise supplemented and in effect from time to time,
the “Indenture”), with the Holders (as defined in the Indenture), and Beneficiary, as Collateral Agent for the Holders, pursuant to which the Holders agreed to extend to Issuer certain term loan facilities in the aggregate original
principal amount of up to One Hundred Seven Million Forty Thousand and 00/100 Dollars ($107,040,000.00) (collectively, the “Loan”); 

WHEREAS, Trustor will derive indirect economic benefit from the Loan and, in order to induce the Holders to make the Loan, the
Trustor is executing this Deed of Trust and the Guarantors have executed the Indenture; 
 WHEREAS, as a condition to
Beneficiary executing the Indenture, Beneficiary is requiring that Trustor grant to Beneficiary, as trustee and as collateral agent for the Holders, a security interest in and a first mortgage lien upon the Trust Property (as hereinafter defined),
to secure (a) the payment of all of the obligations of Trustor under the Indenture, this Deed of Trust and the other Security Documents (as hereinafter defined), and (b) the performance of all terms, covenants, conditions, provisions,
agreements and liabilities contained in the Indenture, this Deed of Trust and the other Security Documents. 

 NOW, THEREFORE, in order to comply with the terms and conditions of the
Indenture and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Trustor hereby agrees with Beneficiary as follows: 

ARTICLE I 

DEFINITIONS 

Section 1.01 Terms Defined Above. As used in this Deed of Trust, the terms defined in the introductory paragraph to
this Deed of Trust and in the Recitals set forth above shall have the meanings respectively assigned to such terms in such paragraph and Recitals. 

Section 1.02 Definitions. As used herein, the following terms shall have the following meanings: 

“Agent” has the meaning assigned to such term in the Indenture. 

“Applicable UCC” means the Uniform Commercial Code as presently in effect in the State or Commonwealth where the Trust
Property is located. 
 “Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. § 101,
et. seq.), as amended, and any successor statute. 
 “Buildings” means any and all buildings,
structures, garages, utility sheds, workrooms, air conditioning towers, open parking areas and other improvements, and any and all additions, alterations, betterments or appurtenances thereto, now or at any time hereafter situated, placed or
constructed upon the Land or any part thereof. 
 “Default” has the meaning assigned to such term in the
Indenture. 
 “Default Rate” has the meaning assigned to such term in the Indenture. 

“Event of Default” has the meaning assigned to such term in Section 7.01 hereof. 

“Fixtures” means all materials, supplies, equipment, apparatus and other items of Personalty now or hereafter acquired
by Trustor and incorporated into the Trust Property so as to constitute fixtures under the Applicable UCC or otherwise under the laws of the state or commonwealth in which such items are located. 

“Governmental Requirements” means any and all present and future judicial decisions, statutes, rulings, rules,
regulations, permits, certificates or ordinances of any governmental authority in any way applicable to Trustor or the Trust Property, including the ownership, use, occupancy, possession, operation, maintenance, alteration, repair or reconstruction
thereof. 
 “Guarantors” has the meaning assigned to such term in the Indenture. “Guarantor” means
any of the Guarantors. 
  

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 “Impositions” means any and all real estate and personal property taxes;
water, gas, sewer, electricity and other utility rates and charges; charges for any easement, license or agreement maintained for the benefit of the Trust Property; and any and all other taxes, charges and assessments, whether general or special,
ordinary or extraordinary, foreseen or unforeseen, of any kind and nature whatsoever which at any time prior to or after the execution hereof may be assessed, levied or imposed upon the Trust Property or the ownership, use, occupancy, benefit or
enjoyment thereof, together with any interest, costs or penalties that may become payable in connection therewith. 

“Indemnified Parties” means, with respect to any Person entitled to the benefit of an indemnity, such Person and its
officers, directors, shareholders, partners, members, managers, employees, agents, representatives, attorneys, accountants and experts. The term “Indemnified Party” means any one of such Persons. 

“Land” means the real property or interest therein described in Exhibit A attached hereto, and all rights, titles
and interests appurtenant thereto. 
 “Leases” means any and all leases, master leases, subleases, licenses,
concessions or other agreements (whether written or oral, and whether now or hereafter in effect) which grant to third Persons a possessory interest in and to, or the right to use, all or any part of the Trust Property, Land, the Buildings, the
Fixtures and/or the Personalty, together with all security and other deposits made in connection therewith and any guarantee of the obligations of the landlord or the tenant thereunder. 

“License” has the meaning assigned to such term in Section 3.02(a) hereof. 

“Lien” has the meaning assigned to such term in the Indenture. 

“Losses” means all obligations, damages, claims, causes of action, costs, fines, fees, charges, penalties, deficiencies,
losses, diminutions in value, expenses (including court costs, fees and expenses of attorneys, accountants, consultants and other experts) and other liabilities, and, with respect to any indemnity, includes all attorneys’ fees and expenses in
connection with the enforcement and collection of such indemnity. The term “Loss” means any one of such Losses. 

“Obligation” has the meaning assigned to such term in the Indenture. 

“Permitted Lien” has the meaning assigned to such term in the Indenture. 

“Person” has the meaning assigned to such term in the Indenture. 

“Personalty” means all of Trustor’s right, title and interest in and to all furniture, furnishings, equipment,
machinery, goods, general intangibles, money, insurance proceeds, contract rights, option rights, inventory, together with all refundable, returnable or reimbursable fees, deposits or other funds or evidences of credit or indebtedness deposited by
or on behalf of Trustor with any governmental authority, boards, corporations, providers of utility services, 
  

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public or private including all refundable, returnable or reimbursable tap fees, utility deposits, commitment fees and development costs, and all other personal property of any kind or character
(other than Fixtures or the property of any tenant), and including all such property that now or hereafter arise from or are located or to be located upon, within or about the Land and the Buildings, or which are or may be used in or related to the
planning, development, financing or operation of the Trust Property, together with all accessories, replacements and substitutions thereto or therefor and the proceeds thereof. 

“Principal Balance” has the meaning assigned to such term in Section 7.02 hereof. 

“Rents” means all of the rents, revenues, income, proceeds, issues, profits, security and other types of deposits (after
Trustor acquires title thereto), and other benefits paid or payable by parties (other than Trustor) for using, leasing, licensing, possessing, operating from, residing in, benefiting from or otherwise enjoying all or any part of the Land, the
Buildings, the Fixtures and/or the Personalty. 
 “Security Documents” means, collectively, the Indenture, this
Deed of Trust, and all other instruments, security agreements, agreements and other documents executed and delivered pursuant hereto or thereto or otherwise included in the definition of the term “Security Documents” in the
Indenture. 
 “Trust Property” means all of Trustor’s right, title, interest and estate, whether now owned
or hereafter acquired, in and to the Land, the Buildings, the Fixtures and the Personalty, together with: 
 (i) all
rights, privileges, tenements, hereditaments, rights-of-way, easements, air rights, development rights or credits, zoning rights, appendages and appurtenances in anywise appertaining thereto, and all right, title and interest of Trustor in and to
any streets, ways, alleys, strips or gores of land adjoining the Land or any part thereof, and all right, title and interest of Trustor, if any, in and to all rights, royalties and profits with respect to all minerals, coal, oil, gas and other
substances of any kind or character on or underlying the Land, together with all right, title and interest of Trustor in and to all water and water rights (whether riparian, appropriative or otherwise and whether or not appurtenant); 

(ii) all rights of Trustor (but not its obligations) under any contracts and agreements, including, without limitation,
construction contracts and architectural agreements, relating to the Land, the Buildings, the Fixtures or the Personalty; 

(iii) all of Trustor’s right, title and interest in and to all permits, licenses, franchises, certificates, authorizations,
consents, approvals and other rights and privileges (each, a “Permit”) obtained in connection with the Land, the Buildings, the Fixtures or the Personalty or the use or operation thereof; 

 

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 (iv) all of Trustor’s right, title and interest in and to all plans and
specifications, designs, schematics, drawings and other information, materials and matters heretofore or hereafter prepared relating to the Land, the Buildings, the Fixtures or the Personalty; 

(v) all of Trustor’s right, title and interest in and to all proceeds arising from or by virtue of the sale, lease or other
disposition of the Land, the Buildings, the Fixtures or the Personalty or any part thereof or any interest therein or from the operation thereof; 

(vi) all of Trustor’s right, title and interest in and to all Leases now or hereafter in effect and all Rents, royalties,
bonuses, issues, profits, revenues or other benefits arising from or attributable to the Land, the Buildings, the Fixtures or the Personalty; 

(vii) all of Trustor’s right, title and interest in and to all betterments, additions, alterations, appurtenances,
substitutions, replacements and revisions to the Land, the Buildings, the Fixtures or the Personalty and all reversions and remainders relating thereto; 

(viii) all of Trustor’s right, title and interest in and to any awards, remuneration, settlements or compensation now or
hereafter made by any governmental authority pertaining to the Land, the Buildings, the Fixtures or the Personalty, including those arising from or attributable to any vacation of, or change of grade in, any streets affecting the Land or the
Buildings; 
 (ix) all of Trustor’s right, title and interest in and to any and all other security and collateral of
any nature whatsoever, whether now or hereafter given, for the repayment, performance and discharge of the Obligations (as hereinafter defined); 

(x) all of Trustor’s right, title and interest in and to all awards, payments, and proceeds of conversion, whether voluntary
or involuntary, of any of the Land, the Buildings, the Fixtures, the Personalty or any of the property and rights described in the foregoing clauses (i) through (ix), including without limitation, all insurance, condemnation and tort claims,
refunds of real estate taxes and assessments, rent claims and other obligations dischargeable in cash or cash equivalents; and 

(xi) all other property and rights of Trustor of every kind and character relating to and/or used or to be used in connection with
the foregoing, and all proceeds and products of any of the foregoing. 
 As used in this Deed of Trust, the term “Trust
Property” shall be expressly defined as meaning all or, where the context permits or requires, any portion of the above, and all or, where the context permits or requires, any interest therein. 

Section 1.03 Terminology; Other Defined Terms. Any capitalized term used in this Deed of Trust and not otherwise
defined herein shall have the meaning assigned to such term in the Indenture. The rules of construction set forth in Section 1.04 of the Indenture shall apply hereto as if incorporated at length herein. 

 

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 ARTICLE II  

GRANT OF LIEN AND SECURITY INTEREST 

Section 2.01 Grant of Lien. To secure the full and timely payment, performance and discharge of all of the
Obligations, Trustor hereby irrevocably GRANTS, BARGAINS, SELLS, ASSIGNS, TRANSFERS, MORTGAGES, CONVEYS and CONFIRMS unto Trustee and Trustee’s successors, assigns and substitutes in trust hereunder, WITH POWER OF SALE and right of entry and
possession, for the use and benefit of Beneficiary, as trustee and as collateral agent for the Holders pursuant to the Indenture, all right, title, interest and estate in, to and under the Trust Property, subject, however, to the Permitted Liens; TO
HAVE AND TO HOLD the Trust Property unto Trustee and Trustee’s successors, assigns and substitutes in trust hereunder, subject to the terms and conditions of this Deed of Trust, with POWER OF SALE, forever, and Trustor does hereby bind itself,
its successors and assigns to WARRANT AND FOREVER DEFEND the title to the Trust Property unto Beneficiary against every Person whomsoever lawfully claiming or to claim the same or any part thereof, subject, however, to the Permitted Liens;
provided, however, that if Trustor shall pay (or cause to be paid) and perform and discharge (or cause to be performed and discharged) all of the Obligations on or before the date on which the same are to be paid, performed and
discharged, then the Liens, estates and rights granted by this Deed of Trust shall cease and terminate. 

Section 2.02 Grant of Security Interest. This Deed of Trust shall be construed as a mortgage on the Land and the
Buildings and it shall also constitute and serve as a “security agreement” within the meaning of, and shall constitute a first and prior security interest under, the Applicable UCC with respect to the Personalty and the Fixtures. To
this end, Trustor by these presents does GRANT, BARGAIN, CONVEY, ASSIGN, SELL, TRANSFER and SET OVER unto Beneficiary, as trustee and as collateral agent for the Holders pursuant to the Indenture, a security interest in all of Trustor’s right,
title and interest in, to and under the Personalty and the Fixtures, to secure the full and timely payment, performance and discharge of the Obligations. Trustor hereby consents to Beneficiary filing and recording financing statements (and
continuations thereof) with the appropriate filing and recording offices in order to perfect (and maintain the perfection of) the security interests granted herein. To the extent the Indenture serves as a security agreement and in the event that
there is an inconsistency in the terms of this Section 2.02 and the terms of the Indenture, the terms of the Indenture shall prevail pursuant to Section 8.17 of this Deed of Trust. 

Section 2.03 No Obligation of Beneficiary. The assignment and security interest herein granted to Beneficiary shall
not be deemed or construed to constitute Beneficiary as a mortgagee-in-possession of the Trust Property, obligate Beneficiary to lease the Trust Property or attempt to do the same, or to take any action, incur any expense or perform or discharge any
obligation, duty or liability whatsoever. 
 Section 2.04 Fixture Filing. Without in any manner limiting the
generality of any of the other provisions of this Deed of Trust: (a) some portions of the goods described or to which reference is made herein are or are to become fixtures on the Land described or to which reference is made herein or on
Exhibit A attached to this Deed of Trust; (b) this Deed of Trust is 
  

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to be filed of record in the real estate records as a financing statement and shall constitute a “fixture filing” for purposes of the Applicable UCC; and (c) Trustor is the
record owner of the real estate or interests in the real estate constituting the Trust Property hereunder. Information concerning the security interest herein granted may be obtained at the addresses set forth on the first page hereof. The addresses
of the Secured Party (Beneficiary) and of the Debtor (Trustor) are set forth on the first page hereof. In that regard, the information required in connection with the fixture filing and by California Civil Code Section 3097(j) is as follows:

 (1) Name and Address of Secured Party: The Bank of New York Mellon Trust Company, N.A., as Trustee and Collateral Agent for
itself and for each of the financial institutions and their respective successors and assigns which from time to time shall be a “Holder” under the Indenture, 222 Berkeley Street, 2nd Floor, Boston, Massachusetts 02116. 

 

					
		 	Name of Debtor:	  	PHOTO RESEARCH, INC.
			
		 	Address:	  	9731 Topanga Canyon Place, Chatsworth, CA 91311-4135
			
		 	Type of Organization:	  	Corporation
			
		 	State:	  	California

 Section 2.05
Future Advances. It is the intention of Trustor and Beneficiary that this Deed of Trust (as renewed and extended from time to time) shall secure future advances and readavances, and the lien and security interest created by this Deed of Trust
shall attach upon execution and have priority from the time of recording as to all advances, whether obligatory or discretionary, to the fullest extent permitted by law, until this Deed of Trust is released of record. 

Section 2.06 Advances Secured by Deed of Trust. Upon a Default of Trustor for failure to comply with any covenants and
agreements hereunder as to the payment of taxes, assessments, insurance premiums, repairs, protection of the Trust Property or Beneficiary’s lien thereon, and other charges and the costs of procurement of title evidence and insurance as
aforesaid, Beneficiary may, at its option, pay the same in accordance with applicable provisions of the Indenture, and any sums so paid by Beneficiary, together with the reasonable fees of counsel employed by Beneficiary in consultation and in
connection therewith, shall be charged against Trustor, shall be due and payable (together with interest at the applicable rate) by Trustor and shall be a lien upon the Trust Property and be secured by the Deed of Trust in accordance with applicable
provisions of the Indenture. 
 ARTICLE III  

ASSIGNMENT OF LEASES AND RENTS 

Section 3.01 Assignment. For Ten Dollars ($10.00) and other good and valuable consideration, including the
indebtedness evidenced by the Indenture, the receipt and sufficiency of which are hereby acknowledged and confessed, Trustor has presently, absolutely 

 

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and irrevocably GRANTED, BARGAINED, SOLD, ASSIGNED, TRANSFERRED, CONVEYED and CONFIRM, and by these presents does presently, absolutely and irrevocably GRANT, BARGAIN, SELL, ASSIGN, TRANSFER,
CONVEY and CONFIRM, unto Beneficiary, as Collateral Agent for the Holders pursuant to the Indenture, as security for the payment, performance and discharge of the Obligations, all of the Leases and Rents (if any), subject only to the Permitted Liens
applicable thereto and the License (as hereinafter defined); TO HAVE AND TO HOLD the Leases and the Rents unto Beneficiary, forever, and Trustor does hereby bind itself, its successors and assigns to warrant and forever defend the title to the
Leases and the Rents unto Beneficiary against every Person whomsoever lawfully claiming or to claim the same or any part thereof; provided, however, that if Trustor shall pay (or cause to be paid) and perform and discharge (or cause to
be performed and discharged) all of the Obligations on or before the date on which the same are to be paid, performed and discharged, then this assignment shall terminate, and all rights, titles and interests conveyed pursuant to this assignment
shall become vested in Trustor. 
 Section 3.02 Revocable License. 

(a) Beneficiary hereby grants to Trustor a revocable license (the “License”), nonexclusive with the rights of
Beneficiary reserved in Sections 3.02(b), 3.04 and 3.05 hereof, to exercise and enjoy all incidences of the status of a lessor under the Leases and the Rents, including, without limitation, the right to collect, demand, sue for,
attach, levy, recover and receive the Rents and to give proper receipts, releases and acquittances therefor. During the pendency of an Event of Default, Trustor hereby agrees to receive all Rents and hold the same as a trust fund to be applied, and
to apply the Rents so collected, except to the extent otherwise provided in the Indenture, first to the payment, performance and discharge of the Obligations and then to the payment of the Impositions. Thereafter, Trustor may use the balance of the
Rents collected in any manner not inconsistent with the Security Documents. 
 (b) If an Event of Default shall occur and
be continuing, the License shall immediately and automatically terminate without the necessity of any action by Beneficiary or any other Person, and Beneficiary shall have the right in such event to exercise the rights and remedies provided under
this Deed of Trust or otherwise available to Beneficiary under applicable law. Upon demand by Beneficiary at any time that an Event of Default shall have occurred and be continuing, to the extent allowed by applicable law, Trustor shall promptly pay
to Beneficiary all security deposits under the Leases and all Rents allocable to any period commencing from and after the occurrence of such Event of Default and during the period such Default shall be continuing. Any Rents received hereunder by
Beneficiary shall be applied and disbursed to the payment, performance and discharge of the Obligations, subject to the terms of the Indenture; provided, however, that, subject to any applicable requirement of law, any security
deposits actually received by Beneficiary shall be held, applied and disbursed as provided in the applicable Leases. 

Section 3.03 Enforcement of Leases. Trustor shall (a) submit any and all proposed material Leases that affect the
Trustor’s operations on the Trust Property (including subleases provided to Trustor for approval) to Beneficiary for approval prior to the execution thereof or consent thereto, as applicable, such consent not to be unreasonably conditioned,

  

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withheld or delayed; (b) duly and punctually perform and comply with any and all representations, warranties, covenants and agreements expressed as binding upon the lessor under any Lease;
(c) except for a termination right granted to a tenant pursuant to the terms of a Lease, maintain each Lease in full force and effect during the term thereof; (d) provide Beneficiary with prompt notice of each notice of default sent to a
tenant under a Lease, provide Beneficiary with prompt notice of each notice of default received from (or relating to) a tenant under a Lease, and otherwise promptly reasonably indicate that a material default or termination of a Lease may occur
(other than by reason of the expiration of the term of such Lease); (e) appear in and defend any action or proceeding in any manner connected with any of the Leases; (f) deliver to Beneficiary true and complete copies of all Leases; and
(g) deliver to Beneficiary all such further information, and execute and deliver to Beneficiary such further assurances and assignments, with respect to the Leases as Beneficiary may from time to time reasonably request. Without
Beneficiary’s prior written consent, which consent shall not be unreasonably withheld with respect to clause (iv) below, Trustor shall not (i) do or knowingly permit to be done anything to materially impair the value of any of the
Leases; (ii) except for security or similar deposits, collect any of the Rent more than one (1) month in advance of the time when the same becomes due under the terms of any Lease; (iii) discount any future accruing Rents;
(iv) amend, modify, accept the surrender of or terminate any of the Leases; or (v) assign or grant a security interest in or to the License or any of the Leases or Rents. 

Section 3.04 Direction to Tenants. Upon and at any time following the occurrence and during the continuance of an
Event of Default, Trustor hereby authorizes and directs, and shall, at the direction of Beneficiary, further authorize and direct, in writing, the tenant under each Lease to pay directly to, or as directed by, Beneficiary all Rents accruing or due
under its Lease, without proof to the tenant of the occurrence and continuance of such Event of Default. Trustor hereby authorizes the tenant under each Lease to rely upon and comply with any notice or demand from Beneficiary for payment of Rents to
Beneficiary, and Trustor shall have no claim against any tenant for Rents paid by such tenant to Beneficiary pursuant to such notice or demand. All Rents actually collected by Beneficiary pursuant to this Section 3.04 shall be applied in
accordance with the Indenture. 
 Section 3.05 Appointment of Attorney-in-Fact. 

(a) Trustor hereby constitutes and appoints Beneficiary the true and lawful attorney-in-fact, coupled with an interest, of Trustor
and Trustor hereby confers upon Beneficiary the right, in the name, place and stead of Trustor, to, upon the occurrence and during the continuance of an Event of Default, demand, sue for, attach, levy, recover and receive any of the Rents and any
premium or penalty payable upon the exercise by any third Person under any Lease of a privilege of cancellation originally provided in such Lease and to give proper receipts, releases and acquittances therefor and, after deducting expenses of
collection, to apply the net proceeds as provided in the Indenture. Trustor hereby authorizes and directs any such third Person to deliver such payment to Beneficiary in accordance with this Article III, and Trustor hereby ratifies and
confirms all that its said attorney-in-fact, the Beneficiary, shall do or cause to be done in accordance with this Deed of Trust and by virtue of the powers granted hereby. The foregoing appointment is irrevocable and continuing, and such rights,
powers and privileges shall 
  

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be exclusive in Beneficiary, and its successors and assigns, so long as any part of the Obligations remains unpaid or unperformed and undischarged, and until the commitments under the Indenture
have been terminated. 
 (b) Trustor hereby constitutes and appoints Beneficiary the true and lawful attorney-in-fact,
coupled with an interest, of Trustor and Trustor hereby confers upon Beneficiary the right, in the name, place and stead of Trustor, to subject and subordinate at any time and from time to time any Lease or any part thereof to the lien, assignment
and security interest of this Deed of Trust and to the terms hereof, or to any other mortgage, deed of trust, assignment or security agreement, or to any ground lease or surface lease, with respect to all or a portion of the Trust Property, or to
request or require such subordination, where such reservation, option or authority was reserved to Trustor under any such Lease, or in any case where Trustor otherwise would have the right, power or privilege so to do. The foregoing appointment is
irrevocable and continuing, and such rights, powers and privileges shall be exclusive in Beneficiary, and its successors and assigns, so long as any part of the Obligations remains unpaid or unperformed and undischarged and until the commitments
under the Indenture have been terminated. Trustor hereby represents and warrants that it has not exercised, and no Person has the current right to exercise, any of the rights described in this Section 3.05(b), and Trustor hereby
covenants not to exercise (or appoint any other Person as attorney-in-fact to exercise) any such right, nor (except at Beneficiary’s written request) to subordinate any such Lease to the lien of this Deed of Trust or to any other mortgage, deed
of trust, assignment or security agreement or to any ground lease or surface lease. 
 Section 3.06 No Liability
of Beneficiary. Neither the acceptance hereof nor the exercise of the rights and remedies hereunder nor any other action on the part of Beneficiary or any Person exercising the rights of Beneficiary or any Holder hereunder shall be construed to:
(a) be an assumption by Beneficiary or any such Person or to otherwise make Beneficiary or such Person liable or responsible for the performance of any of the obligations of Trustor under or with respect to the Leases or for any Rent, security
deposit or other amount delivered to Trustor, provided that Beneficiary or any such Person exercising the rights of Beneficiary shall be accountable for any Rents, security deposits or other amounts actually received by Beneficiary or such Person,
as the case may be; or (b) obligate Beneficiary or any such Person to take any action under or with respect to the Leases or with respect to the Trust Property, to incur any expense or perform or discharge any duty or obligation under or with
respect to the Leases or with respect to the Trust Property, to appear in or defend any action or proceeding relating to the Leases or the Trust Property, to constitute Beneficiary as a mortgagee-in-possession (unless Beneficiary actually enters and
takes possession of the Trust Property), or to be liable in any way for any injury or damage to Persons or property sustained by any Person in or about the Trust Property, other than to the extent caused by the bad faith, willful misconduct or gross
negligence of Beneficiary or any Person exercising the rights of Beneficiary hereunder. In connection with its appointment and acting hereunder, Beneficiary is otherwise entitled to all rights, privileges, protections, benefits, immunities and
indemnities provided to it as Trustee and Collateral Agent under the Security Documents. 
 Section 3.07
Trustor’s Indemnities. Trustor hereby agrees to protect, indemnify and hold harmless Beneficiary and of the Holders and each Indemnified Party related to Beneficiary or such other Holders from and against any and all Losses which
Beneficiary or any such other Holders or Indemnified Party may incur under or by reason of this Article III, or for 
  

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any action taken by Beneficiary or any such other Holder or Indemnified Party hereunder, or by reason or in defense of any and all claims and demands whatsoever which may be asserted against
Beneficiary or any such other Holders or Indemnified Party arising out of the Leases, including, without limitation, any claim by any third Person for credit on account of Rents paid to and received by Trustor, but not delivered to Beneficiary or
its agents, representatives or employees, for any period under any Lease more than one (1) month in advance of the due date thereof. The foregoing indemnity shall include, in any case, such Loss as may result from the ordinary good faith
negligence of Beneficiary or such other Holders or Indemnified Party, but not any such Loss that is caused by the bad faith, gross negligence or willful misconduct of Beneficiary or any such other Holders or Indemnified Party. In the event that
Beneficiary or any of the other Holders or any Indemnified Party incurs any Losses covered by the indemnity set forth in this Section 3.07, the amount thereof, including reasonable attorneys’ fees, with interest thereon at the
Default Rate, shall be payable by Trustor to Beneficiary within ten (10) days after demand therefor, and shall be secured hereby and by all other security for the payment and performance of the Obligations, including, without limitation, the
lien and security interest of this Deed of Trust. The liabilities of Trustor as set forth in this Section 3.07 shall survive the termination of this Deed of Trust and the repayment of the Obligations. 

Section 3.08 No Modification of Trustor’s Obligations. Nothing herein contained shall modify or otherwise alter
the obligation of Trustor to make prompt payment of all Obligations as and when the same become due, regardless of whether the Rents described in this Article III are sufficient to pay the Obligations, and the security provided to Beneficiary
pursuant to this Article III shall be cumulative of all other security of any and every character now or hereafter existing to secure payment of the Obligations. 

ARTICLE IV  

REPRESENTATIONS AND WARRANTIES 

Trustor hereby unconditionally represents and warrants to Beneficiary as follows: 

Section 4.01 Title to Trust Property and Lien of this Deed of Trust. To the best of its knowledge, Trustor has good,
marketable and indefeasible fee simple title to the Land and the Buildings, and, to the best of its knowledge, has good, marketable and indefeasible title to the Fixtures, the Personalty and the other Trust Property. The Trust Property is free and
clear of any and all Liens, charges, encumbrances, security interests and adverse claims whatsoever, except for all Permitted Liens. 

Section 4.02 Taxes and Other Payments. Trustor has filed all federal, state, commonwealth, county, municipal and city
income and other material tax returns required to have been filed by it and has paid all taxes and other Impositions which have become due pursuant to such returns or pursuant to any assessments or charges received by it, and Trustor does not know
of any basis for any additional assessment or charge in respect of any such taxes or other Impositions. Trustor has paid in full all sums owing or claimed for labor, material, supplies, personal property (whether or not forming a Fixture hereunder)
and services of every 
  

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kind and character used, furnished or installed in or on the Trust Property that are now due and owing and no claim for same exists or will be permitted to be created, except such claims as may
arise in the ordinary course of business and that are not yet past due. 
 Section 4.03 Power to Create Lien and
Security. Trustor has full power and lawful authority to grant, bargain, sell, assign, transfer, mortgage and convey a Lien and security interest in all of the Trust Property in the manner and form herein provided and without obtaining the
authorization, approval, consent or waiver of any grantor, lessor, sublessor, governmental authority or other Person whomsoever. 

Section 4.04 Loan and Security Documents. Trustor has received a copy of and is fully familiar with the terms and
provisions of the Indenture and the other Security Documents. All representations and warranties made by Trustor in the Indenture and the other Security Documents are incorporated herein by reference and are hereby made by Trustor as to itself and
the Trust Property as though such representations and warranties were set forth at length herein as the representations and warranties of Trustor. 

Section 4.05 Compliance with Laws. To the actual knowledge of Trustor, all of the improvements on the Land
(i) comply with all material requirements of all applicable laws and ordinances with respect to zoning, subdivision, construction, building and land use, including, without limitation, requirements with respect to parking, access and
certificates of occupancy (and similar certificates) and (ii) comply with, and shall remain in compliance with, applicable health, fire and building codes. Except as set forth on any surveys delivered by Trustor to Beneficiary, all of the
Buildings lie wholly within the boundaries and building restriction lines of the Land. Except as set forth on any surveys delivered by Trustor to Beneficiary, to the actual knowledge of Trustor, no improvements on adjoining properties encroach upon
the Land, and no easements or other encumbrances upon the Land encroach upon or under any of the Buildings or any portion of the Trust Property. To the actual knowledge of Trustor, all of the Buildings and the use of the Trust Property materially
comply with, and shall remain in material compliance with, all applicable statutes, rules, regulations and private covenants now or hereafter relating to the ownership, construction, use or operation of the Trust Property, including all applicable
statutes, rules and regulations pertaining to requirements for equal opportunity, anti-discrimination, fair housing, environmental protection, zoning and land use. All certifications, permits, licenses and approvals, including, without limitation,
certificates of completion and occupancy permits required for the legal use, occupancy and operation of the Trust Property have been obtained and are in full force and effect. Trustor has not received any notice of, or other communication with
respect to, an alleged violation with respect to any of the foregoing. 
 Section 4.06 No Condemnation. With
the exception of the Permitted Exceptions, no part of any property subject to this Deed of Trust has been taken in condemnation or other like proceeding nor is any proceeding pending, threatened or known to be contemplated for the partial or total
condemnation or taking of the Trust Property. 
 Section 4.07 Flood Zone. To the best of Trustor’s
knowledge, the Trust Property is not located in an area identified by the Federal Emergency Management Agency 
  

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(“FEMA”) as having special flood hazards or if the Land or any part thereof is identified by the Federal Emergency Management Agency as an area having special flood hazards
(including, without limitation, those areas designated as Zone A or Zone V), then Trustor has obtained the insurance required under Section 5.04(a)(v) of this Deed of Trust. 

ARTICLE V  

AFFIRMATIVE COVENANTS 

Trustor hereby unconditionally covenants and agrees with Beneficiary as follows: 

Section 5.01 Lien Status. Except as otherwise expressly provided in the Indenture, Trustor shall not place, or permit
to be placed, or otherwise mortgage, hypothecate or encumber the Trust Property, or any portion thereof or interest therein, with any other Lien or security interest of any nature whatsoever (statutory, constitutional or contractual), other than
Permitted Liens, regardless of whether such Lien or security interest is inferior to the Lien and security interest created by this Deed of Trust, and, if any such Lien or security interest is asserted against the Trust Property, Trustor shall
promptly, at its own cost and expense, (a) pay the underlying claim in full (except for so long as such claim is being contested by Trustor in good faith and as and to the extent permitted in accordance with the terms of the Indenture) or take
such other action as may be necessary to cause the same to be released of record and otherwise, and (b) within five (5) days after the date on which such Lien or security interest is so asserted, give Beneficiary notice of such Lien or
security interest. Such notice shall specify who is asserting such Lien or security interest and shall detail the origin and nature of the underlying claim giving rise to such asserted Lien or security interest. 

Section 5.02 Payment of Impositions. Trustor shall duly pay and discharge, or cause to be paid and discharged, all
Impositions not later than the due date thereof, or the day on which any fine, penalty, interest or cost may be added thereto or imposed, or the day on which any Lien may be filed for the nonpayment thereof (if such day is used to determine the due
date of the respective item); provided, however, that Trustor may, if permitted by applicable law and if such installment payment would not create or permit the filing of a Lien against the Trust Property, pay the Impositions in
installments. Notwithstanding the foregoing, Trustor may in good faith, by appropriate proceedings and upon notice to Beneficiary, contest the validity, applicability or amount of any asserted tax or assessment, subject to any more restrictive
provisions applicable to any such contest contained in the Indenture and (without limiting the foregoing) so long as (a) such contest is properly contested in accordance with applicable provisions of the Indenture, and (b) Beneficiary
determines, in its opinion reasonably exercised, that such contest suspends the obligation to pay the tax and that nonpayment of such tax or assessment will not result in the sale, loss, forfeiture or diminution of the Trust Property or any part
thereof or any interest of Beneficiary therein, and (c) unless expressly provided to the contrary in the Indenture, prior to the earlier of the commencement of such contest or the delinquency date of the asserted tax or assessment, Trustor
deposits with Beneficiary an amount reasonably determined by Beneficiary to be adequate to cover the payment of such tax or assessment and a reasonable additional sum to cover possible interest, costs and penalties;

  

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provided, however, that Trustor shall promptly cause to be paid any amount adjudged by a court of competent jurisdiction to be due, with all interest, costs and penalties thereon,
promptly after such judgment becomes final (and, subject to Beneficiary’s rights and remedies during an Event of Default, Beneficiary shall make any sum deposited pursuant to clause (c) above available for such payment); and
provided, further, that in any event each such contest shall be concluded, the taxes, assessments, interest, costs and penalties shall be paid prior to the date any writ or order is issued under which the Trust Property may be sold,
lost or forfeited. 
 Section 5.03 Repair. Trustor shall keep the Trust Property in good order and condition
(reasonable wear and tear excepted) and shall make all repairs, replacements and improvements thereof and thereto, interior and exterior, structural and non-structural, ordinary and extraordinary, which are necessary to keep the same in such order
and condition. Trustor shall also use reasonable efforts to prevent any act or occurrence which might impair the value or usefulness of the Trust Property for its intended usage. 

Section 5.04 Insurance and Application of Insurance Proceeds. 

(a) During the term of this Deed of Trust, Trustor, at its sole cost and expense, shall maintain, or cause to be maintained all
insurance on the Trust Property that is required to be maintained under the Indenture. In addition, Trustor, at its sole cost and expense, shall maintain or cause to be maintained such other insurance as may, from time to time, reasonably be
required by Beneficiary in order to protect its interests in the Trust Property. Notwithstanding any insurance requirements under the Indenture, Trustor, at its sole cost and expense, shall maintain, or cause to be maintained the following policies
of insurance, with respect to the Trust Property: 
 (i) Casualty (property) insurance against loss or
damage by fire, lightning and such other perils as are included in a standard “special form” policy (formerly known as an “all-risk” endorsement policy), and against loss or damage by all other risks and hazards covered by a
standard extended coverage insurance policy including, without limitation, riot and civil commotion, terrorist actions, vandalism, malicious mischief, burglary and theft, in an amount equal to the greater of (A) the then full replacement cost
of the improvements, without deduction for physical depreciation and (B) such amount that the insurer would not deem Trustor a co-insurer under said policies. The policies of insurance required under this Section 5.04 shall contain
a “Replacement Cost” endorsement with a waiver of depreciation and an “Agreed Amount” or “No Coinsurance” endorsement and shall otherwise comply with the Indenture. 

(ii) Commercial General Liability insurance, including a broad form comprehensive general liability endorsement and
coverages for broad form property damage, contractual damages and personal injuries (including death resulting therefrom) and containing minimum limits per occurrence of $1,000,000.00 and $2,000,000.00 in the aggregate for any policy year with no
deductible. 
 (iii) Rental loss and/or business interruption insurance in an amount equal to the
estimated gross revenues from the operations of the Trust Property for a period of twelve (12) months. 
  

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 (iv) Insurance against loss or damage from (A) leakage of
sprinkler systems and (B) explosion of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus now or hereafter installed on the improvements (without exclusion for
explosions). 
 (v) Flood insurance if all or any portion of the Trust Property is located in an area now
or hereafter designated by the Federal Emergency Management Agency as an area having special flood hazards (including, without limitation, those areas designated as Zone A or Zone V), and in which flood insurance has been made available under the
U.S. National Flood Insurance Program, in an amount equal to the full replacement cost of the Buildings, Fixtures and Personalty now or hereafter located on the Trust Property or such other amount as may be agreed to by Beneficiary in writing.

 (vi) If the Trust Property is or ever becomes non-conforming with respect to zoning, ordinance or law
coverage to compensate for loss of value or property resulting from operation of law and the cost of demolition and the increased cost of construction in such amounts as may be requested by Beneficiary if available at a commercially reasonable cost.

 (vii) Any other insurance with respect to the Trust Property that may be required under the Indenture.

 (viii) Such other insurance as may from time to time be reasonably required by Beneficiary in order to
protect its interests. 
 All such insurance policies with respect to the Trust Property shall contain a standard,
non-contributory mortgagee clause naming Beneficiary, and its successors and assigns, as an additional insured under all liability insurance policies, as the first mortgagee and loss payee on all property insurance policies, and as the sole loss
payee on all rental loss or business interruption insurance policies. Trustor shall not take out separate insurance with respect to the Trust Property concurrent in form or contributing in the event of loss with that required to be maintained
hereunder or under the Indenture unless Beneficiary is named as an additional insured thereon under a standard mortgagee clause acceptable to Beneficiary and each such policy is otherwise in form and substance acceptable to Beneficiary. 

(b) In the event of the foreclosure of this Deed of Trust, or in the event of any transfer of title to the Trust Property, or any
part thereof, by foreclosure sale or by power of sale or deed in lieu of foreclosure, the purchaser of the Trust Property, or such part thereof, shall succeed to all of Trustor’s rights with respect to the Trust Property, including any rights
to unexpired, unearned or returnable insurance premiums, subject to limitations on the assignment of blanket policies, but limited to such rights as relate to the Trust Property or such part thereof. If Beneficiary acquires title to the Trust
Property, or any part thereof, in any manner, Beneficiary shall thereupon (as between Trustor and Beneficiary) become the sole and absolute owner of the insurance policies with respect to the Trust Property, provided, however that Trustor’s
rights and coverage under any such policies shall not be affected by such transfer of title, and all insurance proceeds payable thereunder with respect to the Trust Property, with the sole right to collect and retain all unearned or returnable
premiums thereon with respect to the Trust Property, or such part thereof, if any. 
  

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 (c) If any damage to, destruction or loss of or other casualty with respect to any of
the Trust Property shall occur, Trustor shall file and prosecute its claim or claims for any insurance proceeds in good faith and with due diligence and cause the same to be collected and paid over to Beneficiary, and Trustor hereby irrevocably
authorizes and empowers Beneficiary, in the name of Trustor or otherwise, to collect and receipt for any such insurance proceeds and to adjust any insurance claims and to file and prosecute such claim or claims, and although it is hereby expressly
agreed that the same shall not be necessary in any event, Trustor shall, upon demand of Beneficiary, make, execute and deliver any and all assignments and other instruments sufficient for the purpose of assigning any such insurance proceeds to
Beneficiary, free and clear of any Liens whatsoever. Trustor hereby irrevocably appoints Beneficiary as Trustor’s attorney-in-fact for each such purpose (which appointment is coupled with an interest) and authorizes any Person to act upon the
foregoing appointment. 
 (d) Following any damage to, destruction or loss of or other casualty with respect to any of
the Trust Property, Trustor shall, in its sole and absolute discretion, apply the entire amount thereof to (i) the restoration of the Trust Property in accordance with customary construction loan practices provided that such restoration can be
completed within 270 days of the occurrence of any casualty loss affecting the Trust Property or (ii) in the event that restoration cannot be completed within 270 days of the occurrence of a casualty loss affecting the Trust Property or if
Trustor so elects, the payment of the Obligations, whether or not then due and payable, in such manner and order as Beneficiary may elect. In the event that Trustor elects to restore the Trust Property in accordance with the terms of the previous
sentence, Trustor hereby covenants and agrees to promptly commence and to diligently prosecute the restoration of the Trust Property upon the occurrence of any casualty loss affecting the Trust Property, without regard to the availability or
adequacy of insurance proceeds, but in all events in a manner approved by Beneficiary. Notwithstanding any damage to, destruction or loss of or other casualty with respect to any of the Trust Property, Trustor shall continue to pay the Obligations
at the time and in the manner provided for in the Indenture and the other Security Documents until the Obligations have been paid in full. If the Trust Property is sold, through foreclosure or otherwise, prior to the receipt by Beneficiary of such
insurance proceeds, Beneficiary shall have the right, whether or not a deficiency judgment on any Security Document shall have been sought, recovered or denied, to receive such insurance proceeds, or a portion thereof sufficient to pay the then
unpaid Obligations, whichever is less. 
 Section 5.05 Condemnation and Application of Condemnation Proceeds.

 (a) Promptly upon its obtaining knowledge of the institution or the threatened institution of any proceeding for the
condemnation or other taking of the Trust Property, or any portion thereof or interest therein, Trustor shall notify Beneficiary of such proceeding. Trustor shall then, if reasonably requested by Beneficiary, file or defend its claim thereunder and
prosecute same with due diligence to its final disposition and shall, subject to the terms of the Indenture, cause any awards or settlements to be paid over to Beneficiary for disposition pursuant to the terms of this Deed of Trust. Beneficiary
shall be entitled to participate in any 
  

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such proceeding and Trustor shall deliver or cause to be delivered to Beneficiary such instruments as may be requested by Beneficiary from time to time to permit such participation and Trustor
shall pay all reasonable costs and expenses of Beneficiary in connection with Beneficiary’s participation in such proceedings and delivery of documents in connection therewith. 

(b) If the Trust Property or any part thereof is taken (the loss of which shall have a material impact on Trustor’s ability
to use and operate the Trust Property), or if a consent settlement is entered by or under threat of such proceeding, then Trustor shall, in its sole an absolute discretion, apply the entire amount thereof to (i) the restoration of the Trust
Property provided that such restoration can be completed within 270 days of the occurrence of condemnation or other taking affecting the Trust Property or (ii) in the event that restoration cannot be completed within 270 days of the occurrence
of a condemnation or other taking affecting the Trust Property or if Trustor so elects, the payment of the Obligations, whether or not then due and payable, in such manner and order as Beneficiary may elect. In the event that Trustor elects to
restore the Trust Property in accordance with the terms of the previous sentence, Trustor hereby covenants and agrees to promptly commence and to diligently prosecute the restoration of the Trust Property upon the occurrence of any condemnation or
other taking affecting the Trust Property, without regard to the availability or adequacy of any award or settlement, but in all events in a manner approved by Beneficiary. Notwithstanding any condemnation or other taking of any of the Trust
Property, Trustor shall continue to pay the Obligations at the time and in the manner provided for in the Indenture and the other Security Documents, and the Obligations shall not be reduced until, and then only to the extent that, any condemnation
award or settlement shall have been actually received and applied by Beneficiary to the discharge of the Obligations. If the Trust Property is sold, through foreclosure or otherwise, prior to the receipt by Beneficiary of such condemnation award or
settlement, Beneficiary shall have the right, whether or not a deficiency judgment on any Security Document shall have been sought, recovered or denied, to receive such condemnation award or settlement, or a portion thereof sufficient to pay the
Obligations, whichever is less. 
 Section 5.06 Maintenance of Rights-of-Way, Easements, Licenses and Other
Rights. Trustor shall maintain, preserve and renew all rights-of-way, easements, tenements, hereditaments, development rights and credits, zoning rights, grants, privileges, appurtenances, licenses, franchises and other rights reasonably
necessary for the use or operation of the Trust Property from time to time, or otherwise relevant to the value thereof, and Trustor shall not, without the prior written consent of Beneficiary, which consent shall not be unreasonably withheld,
initiate, join in or consent to any private restrictive covenant or other public or private restriction as to the present or future use or operation of the Trust Property. Trustor shall, however, comply with all restrictive covenants which may at
any time affect the Trust Property, all applicable zoning ordinances and all other public or private restrictions relating to the use of the Trust Property. 

Section 5.07 Payment and Performance of Obligations. Trustor shall duly and punctually pay and perform all of the
Obligations. 
  

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 Section 5.08 Compliance with Permitted Liens and Other Obligations.
Trustor shall comply in all material respects with any and all obligations, restrictions and requirements that may be set forth in each and every document constituting a Permitted Lien. In addition, Trustor shall comply in all material respects with
each and every obligation legally imposed upon it and/or relating to the Trust Property pursuant to applicable law (including, without limitation, all matters described in Section 4.05 hereof), contract or other agreement. It is hereby
acknowledged that Beneficiary’s consent to a Permitted Lien as of the date hereof shall in no way be deemed to constitute approval of any future Lien which may be imposed upon any portion of the Trust Property, or any other enforcement action
affecting Trustor or the Trust Property, as a result of Trustor’s failure to perform or comply with its obligations under any document constituting a Permitted Lien as of the date hereof. 

Section 5.09 Additional Affirmative Covenants. All affirmative covenants made by the Guarantors or any of them in the
Indenture are incorporated herein by reference and are hereby also made by Trustor as to itself and the Trust Property as though such covenants were set forth at length herein as the covenants of Trustor. 

ARTICLE VI  

NEGATIVE COVENANTS 

Trustor hereby covenants and agrees with Beneficiary that, until all of the Obligations shall have been paid or performed in full and
discharged, and the commitments under the Indenture: 
 Section 6.01 Use Violations. Trustor shall not
use, maintain, operate or occupy, or allow the use, maintenance, operation or occupancy of, the Trust Property in any manner which (a) violates in any material respect any Governmental Requirement, (b) may be dangerous unless safeguarded
as required by applicable law, (c) constitutes a public or private nuisance, or (d) makes void, voidable or cancelable, or increases, substantially in excess of commercially reasonably rates, the premium of, any insurance then in force
with respect thereto. 
 Section 6.02 Waste. Trustor shall not commit or permit any waste with respect to the
Trust Property. 
 Section 6.03 Alterations. Trustor shall notify Beneficiary, in writing and in advance,
with respect to all proposed alterations, improvements or additions to the Trust Property which are of a material nature, and, unless and to the extent otherwise expressly provided in the Indenture, Trustor shall not effect any material alteration,
improvement or addition to the Trust Property without the prior written consent of Beneficiary. 
 Section 6.04
No Further Encumbrances. Trustor shall not, except either as provided in the Indenture or without the prior written consent of Beneficiary, create, place or permit to be created or placed, or through any act or failure to act, acquiesce in
the placing of, or allow to remain, any mortgage, pledge, Lien (statutory, constitutional or contractual), security 

 

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interest, encumbrance or charge on, or conditional sale or other title retention agreement with respect to, the Trust Property, or any portion thereof or interest therein, other than the
Permitted Liens, regardless of whether the same are subordinate to the Lien(s) and security interest(s) created by this Deed of Trust. 

Section 6.05 Transfer Restrictions. Trustor shall not sell, lease, assign, transfer or otherwise dispose of or abandon
all or any part of the Trust Property (or any interest therein), except as expressly permitted by, and in accordance with the terms of, the Indenture. 

Section 6.06 Loan and Indentures; Additional Negative Covenants. Trustor has received a copy of and is fully familiar
with the terms and provisions of the Indenture and the other Security Documents. All negative covenants made by the Guarantors or any of them in the Indenture and the other Security Documents are incorporated herein by reference and are hereby also
made by Trustor as to itself and the Trust Property as though such negative covenants were set forth at length herein as the negative covenants of Trustor. 

ARTICLE VII  

EVENTS OF DEFAULT AND REMEDIES 

Section 7.01 Event of Default. The “Events of Default” set forth in Article Six of the Indenture are
hereby incorporated herein as if fully set forth herein, and, without limiting the generality of the foregoing, the occurrence of an “Event of Default” or a “Default” under the Indenture or any other Security Document shall
constitute an “Event of Default” hereunder. 
 Section 7.02 Acceleration. Unless otherwise
provided in the Indenture, upon the occurrence and during the continuance of any Event of Default, in addition to any other rights, powers or remedies conferred herein or by operation of law, Beneficiary, in its sole judgment and discretion, may
declare the then unpaid principal balance of the Loan (the “Principal Balance”), the accrued interest thereon and any other accrued but unpaid portion of the Obligations to be, and they shall thereupon forthwith become, immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by Trustor. 

Section 7.03 Foreclosure and Sale. If an Event of Default shall occur and be continuing, Beneficiary shall have the
right and option to take possession of the Trust Property and/or proceed with foreclosure by directing Trustee, or Trustee’s successors or substitutes in trust, and to sell, to the extent and in the manner permitted by applicable law, all or
any portion of the Trust Property at one or more sales, as an entirety or in parcels, at such place or places, in such manner and upon such notice as may be required by applicable law, or, in the absence of any such requirement, as Beneficiary may
deem appropriate, and to make conveyance to the purchaser or purchasers. Where the Trust Property is situated in more than one county, notice as above provided shall be posted and filed in all such counties (if such notices are required by
applicable law), and all such Trust Property may be sold in any such county and any such notice shall designate the county where such Trust Property is to be sold. Nothing contained in this 

 

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Section 7.03 shall be construed so as to limit in any way Beneficiary’s rights to sell the Trust Property, or any portion thereof, by private sale if, and to the extent that,
such private sale is permitted under the laws of the applicable jurisdiction or by public or private sale after entry of a judgment by any court of competent jurisdiction so ordering. Trustor hereby irrevocably appoints Beneficiary to be the
attorney-in-fact of Trustor (coupled with an interest) and in the name and on behalf of Trustor to execute and deliver any deeds, transfers, conveyances, assignments, assurances and notices which Trustor ought to execute and deliver, and to do and
perform any other acts or things which Trustor ought to do and perform under the covenants herein contained and, generally, to use the name of Trustor in the exercise of any of the powers hereby conferred on Beneficiary. At any such sale:
(a) whether made under the power herein contained or any other legal enactment, or by virtue of any judicial proceedings or any other legal right, remedy or recourse, it shall not be necessary for Beneficiary to have physically present, or to
have constructive possession of, the Trust Property (Trustor hereby covenanting and agreeing to deliver to Beneficiary any portion of the Trust Property not actually or constructively possessed by Beneficiary immediately upon demand by Beneficiary)
and the title to and right of possession of any such property shall pass to the purchaser thereof as completely as if the same had been actually present and delivered to purchaser at such sale; (b) each instrument of conveyance executed by
Beneficiary shall contain a general warranty of title, binding upon Trustor and its successors and assigns; (c) each and every recital contained in any instrument of conveyance made by Beneficiary shall conclusively establish the truth and
accuracy of the matters recited therein, including, without limitation, nonpayment and/or nonperformance of the Obligations and advertisement and conduct of such sale in the manner provided herein and otherwise required by applicable law;
(d) any and all prerequisites to the validity thereof shall be conclusively presumed to have been performed; (e) the receipt of Beneficiary, or of such other Person or officer making the sale, shall be a sufficient discharge to the
purchaser for its purchase money and neither such purchaser nor its assigns or personal representatives shall thereafter be obligated to see to the application of such purchase money, or be in any way answerable for any loss, misapplication or
non-application thereof; (f) to the fullest extent permitted by applicable law, Trustor shall be completely and irrevocably divested of all of its right, title, interest, estate, claim and demand whatsoever, either at law or in equity
(including any statutory or common law right of redemption, which is hereby waived to the fullest extent permitted by applicable law), in and to the property sold in any such event, and such sale shall be a perpetual bar, both at law and in equity,
against Trustor and any and all other Persons claiming by, through or under Trustor; and (g) to the extent and under such circumstances as are permitted by applicable law, Beneficiary may be a purchaser at any such sale, and shall have the
right, after paying or accounting for all costs of said sale or sales, to credit the amount of the then unpaid Obligations to the amount of its bid (in the order of priority set forth in Section 7.16 hereof) in lieu of cash payment. Each
remedy provided in this instrument is distinct from and cumulative with all other rights and remedies provided hereunder or afforded by applicable law or equity, and may be exercised concurrently, independently or successively, in any order
whatsoever. 
 Section 7.04 Trustee’s Agents. Trustee or any successor to or substitute for Trustee may
appoint or delegate any one or more Persons as agent to perform any act or acts necessary or incident to any sale held by Trustee, including the posting of notices and the 

 

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conduct of sale, but in the name and on behalf of Beneficiary. If Trustee or any successor to or substitute for Trustee shall have given notice of sale hereunder, any successor or substitute
trustee thereafter appointed may complete the sale and the conveyance of the Trust Property pursuant thereto as if such notice had been given by the successor to or substitute for Trustee conducting the sale. 

Section 7.05 Judicial Foreclosure. If any Event of Default shall occur and be continuing, Trustee or Beneficiary shall
have the right and power to proceed by a suit or suits in equity or at law, whether for the specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, or for any foreclosure hereunder
or for the sale of the Trust Property under the judgment or decree of any court or courts of competent jurisdiction, or for the appointment of a receiver pending any foreclosure hereunder or the sale of the Trust Property under the order of a court
or courts of competent jurisdiction or under executory or other legal process, or for the enforcement of any other appropriate legal or equitable remedy. Any money advanced by Trustee and/or Beneficiary in connection with any such receivership shall
be a demand obligation (which obligation Trustor hereby expressly promises to pay) owing by Trustor to Trustee and/or Beneficiary and shall bear interest from the date of such advance by Trustee and/or Beneficiary until paid at the Default Rate.

 Section 7.06 Receiver. If any Event of Default shall occur and be continuing, Beneficiary shall have the
right and power to proceed by a suit or suits in equity or at law, whether for the specific performance of Beneficiary which Trustee may apply for and obtain as a matter of right and without notice to Trustor, which notice is hereby expressly waived
by Trustor, the appointment of a receiver to collect the Rents of the Trust Property and to preserve the security hereof, either before or after any foreclosure sale or the sale of the Trust Property under the order of a court or courts of competent
jurisdiction or under executory or other legal process, without regard to the value of the Trust Property as security for the amount then due to Beneficiary, or the solvency of any entity or entities, person or persons primarily or secondarily
liable for the payment of such amounts; the Rents of the Trust Property, in any such event, having heretofore been assigned to Beneficiary pursuant to Section 3.01 hereof as additional security for the payment of the Obligations secured
hereby. Any money advanced by Beneficiary in connection with any such receivership shall be a demand obligation (which obligation Trustor hereby expressly promises to pay) owing by Trustor to Beneficiary and shall be subject to the provisions of
Section 9.07(b) hereof. 
 Section 7.07 Foreclosure for Installments. To the extent allowed by
applicable law and in accordance with the Indenture, during the pendency of an Event of Default, Beneficiary shall also have the option to proceed with foreclosure in satisfaction of any installments of the Obligations which have not been paid when
due, either through the courts or otherwise, by non-judicial power of sale, by directing Trustee or any successors in trust to Trustee to proceed with foreclosure, in satisfaction of the matured but unpaid portion of the Obligations as if under a
full foreclosure, conducting the sale as herein provided and without declaring the entire principal balance and accrued interest due. Such sale may be made subject to the unmatured portion of the Obligations, and any such sale shall not in any
manner affect the 
  

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unmatured portion of the Obligations, but as to such unmatured portion of the Obligations this Deed of Trust shall remain in full force and effect just as though no sale had been made hereunder.
It is further agreed that several sales may be made hereunder without exhausting the right of sale for any unmatured part of the Obligations, it being the intent and purpose hereof to provide for a foreclosure and sale of the security for any
matured portion of the Obligations without exhausting the power to foreclose and sell the Trust Property for any subsequently maturing portion of the Obligations. 

Section 7.08 Separate Sales. To the extent allowed by applicable law, the Trust Property may be sold in one or more
parcels and in such manner and order as Beneficiary, in its sole discretion, may elect, it being expressly understood and agreed that the right of sale arising out of any Event of Default shall not be exhausted by any one or more sales. 

Section 7.09 Possession of Trust Property. Trustor agrees to the full extent that it lawfully may, that, in case one
or more of the Events of Default shall have occurred and be continuing, then, and in every such case, Trustee or Beneficiary shall have the right and power to enter into and upon and take possession of all or any part of the Trust Property in the
possession of Trustor, its successors or assigns, or its or their agents or servants, and may exclude Trustor, its successors or assigns, and all Persons claiming by, through or under Trustor, and its or their agents or servants wholly or partly
therefrom; and, holding the same, Trustee or Beneficiary may use, administer, manage, operate and control the Trust Property and conduct the business thereof to the same extent as Trustor, its successors or assigns, might at the time do and may
exercise all rights and powers of Trustor, in the name, place and stead of Trustor, or otherwise as Trustee or Beneficiary shall deem best. All costs, expenses and liabilities of every character incurred by Trustee and/or Beneficiary in
administering, managing, operating and controlling the Trust Property shall constitute a demand obligation (which obligation Trustor hereby expressly promises to pay) owing by Trustor to Trustee and/or Beneficiary and shall be subject to the
provisions of Section 9.07(b) hereof. Trustor hereby irrevocably constitutes and appoints Beneficiary as Trustor’s attorney-in-fact (coupled with an interest) to perform such acts and execute such documents as Beneficiary, in its sole
discretion, shall deem appropriate, including endorsement of Trustor’s name on any instruments. Regardless of any provision of this Deed of Trust, the Financing Agreement or any other Security Document, Beneficiary shall not be considered to
have accepted any property other than cash or immediately available funds in satisfaction of any obligation of Trustor to Beneficiary, unless Beneficiary shall have given express written notice of Beneficiary’s election to the contrary.

 Section 7.10 Intentionally Omitted. 

Section 7.11 Remedies Cumulative, Concurrent and Nonexclusive. Every right, power and remedy herein given to Trustee
or Beneficiary shall be cumulative and in addition to every other right, power and remedy herein specifically given or now or hereafter existing in equity, at law or by statute (including specifically those granted by the Applicable UCC). Each such
right, power and remedy, whether specifically herein given or otherwise existing, may be exercised from time to time and so often and in such order as may be deemed expedient by Trustee or Beneficiary, and the exercise, or the beginning of the
exercise, of any such right, power or remedy shall not be deemed a waiver of the right to exercise, at the same time or 

 

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thereafter, any other right, power or remedy. Beneficiary shall be entitled to collect all reasonable costs and expenses incurred in pursuing such remedies. No delay or omission by Trustee or
Beneficiary in the exercise of any such right, power or remedy shall impair any such right, power or remedy or operate as a waiver thereof or of any other right, power or remedy then or thereafter existing. 

Section 7.12 No Release of Obligations. To the extent permitted by law, neither Trustor, any Guarantor, nor any other
Person now or hereafter obligated for the payment or performance of all or any part of the Obligations shall be relieved of any such obligation by reason of (a) the failure of Trustee or Beneficiary to comply with any request of Trustor,
Beneficiary, any Guarantors or any other Person so obligated to foreclose the Lien of this Deed of Trust to enforce any provision hereunder or under the Financing Agreement; (b) the release, regardless of consideration, of the Trust Property or
any portion thereof or interest therein or the addition of any other property to the Trust Property; (c) any agreement or stipulation between any subsequent owner of the Trust Property and Beneficiary extending, renewing, rearranging or in any
other way modifying the terms of this Deed of Trust without first having obtained the consent of, given notice to or paid any consideration to Trustor, Beneficiary, any Guarantor, or any other Person, and in any such event Trustor, Beneficiary, all
Guarantors, and all such other Persons shall continue to be liable to make payment according to the terms of any such extension or modification agreement unless expressly released and discharged in writing by Beneficiary; or (d) any other act
or occurrence save and except the complete payment and performance of all of the Obligations. 
 Section 7.13
Release of and Resort to Collateral. Beneficiary may release, regardless of consideration, any part of the Trust Property without, as to the remainder, in any way impairing, affecting, subordinating or releasing the Lien or security interest
created in or evidenced by this Deed of Trust or its stature as a first and prior Lien and security interest in and to the Trust Property, and without in any way releasing or diminishing the liability of any Person liable for the payment or
performance of the Obligations. Beneficiary may resort to any other security for the Obligations held by Trustee or Beneficiary in such manner and order as Beneficiary may elect. Upon satisfaction of all of the Obligations, Beneficiary shall
promptly comply with its obligations under California Civil Code Section 2941 and cause this Deed of Trust to be reconveyed. 

Section 7.14 Waiver of Redemption, Notice and Marshalling of Assets. To the fullest extent permitted by applicable
law, Trustor hereby irrevocably and unconditionally waives and releases (a) all benefits that might accrue to Trustor by virtue of any present or future moratorium law or other law exempting the Trust Property from attachment, levy or sale on
execution or providing for any appraisement, valuation, stay of execution, exemption from civil process, redemption or extension of time for payment; (b) except for notices expressly provided for herein or in the Indenture, all notices of any
Event of Default or of Beneficiary’s intention to accelerate maturity of the Obligations or of Trustee’s or Beneficiary’s election to exercise or actual exercise of any right, remedy or recourse provided for hereunder or under the
Indenture; and (c) any right to a marshalling of assets or a sale in inverse order of alienation; and (d) any and all conflicts with any provisions of any of the Security Documents. If any law referred to in

  

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this Deed of Trust and now in force, of which Trustor or its successor or successors might take advantage despite the provisions hereof, shall hereafter be repealed or cease to be in force, such
law shall thereafter be deemed not to constitute any part of the contract herein contained or to preclude the operation or application of the provisions hereof. 

Section 7.15 Discontinuance of Proceedings. In case Beneficiary shall have proceeded to invoke any right, remedy or
recourse permitted hereunder or under the Indenture and shall thereafter elect to discontinue or abandon same for any reason, Beneficiary shall have the unqualified right so to do and, in such an event, Trustor and Beneficiary shall be restored to
their former positions with respect to the Obligations, this Deed of Trust, the Indenture, the Trust Property and otherwise, and the rights, remedies, recourses and powers of Beneficiary shall continue as if same had never been invoked. 

Section 7.16 Application of Proceeds. After the occurrence and during the continuance of an Event of Default, the
proceeds of any sale of and any other amounts generated by the holding, leasing, operating or other use of the Trust Property shall be applied by Beneficiary (or the receiver, if one is appointed), to the extent that funds are so available
therefrom, in accordance with the provisions of the Indenture or, if not so provided, then in the following order of priority, except to the extent otherwise required by applicable law: 

(a) first, to the payment of the reasonable and necessary costs and expenses of taking possession of the Trust Property and of
holding, using, leasing, repairing, improving the same, including reasonable (i) receivers’ fees, (ii) court costs, (iii) attorneys’ and accountants’ fees, (iv) costs of advertisement and title search fees, and
(v) the payment of any and all Impositions, Liens, security interests or other rights, titles or interests equal or superior to the Lien and security interest of this Deed of Trust (except those to which the Trust Property has been sold subject
to and without in any way implying Beneficiary’s prior consent to the creation thereof); 
 (b) second, to the
payment of all amounts other than the Principal Balance and accrued but unpaid interest which may be due to Beneficiary hereunder or under the other Security Documents, together with interest thereon as provided herein; 

(c) third, to the payment of the Obligations in such order and manner as Beneficiary may elect in accordance with the Indenture;
and 
 (d) fourth, to Trustor or as otherwise required by any Governmental Requirement. 

Trustor shall be liable for any deficiency remaining. 

Section 7.17 Uniform Commercial Code Remedies. Beneficiary shall have all of the rights, remedies and recourses with
respect to the Personalty and the Fixtures afforded to it by the Applicable UCC, including, without limitation, the right to take possession of the Personalty and the Fixtures or any part thereof, and to take such other measures as Beneficiary may
deem necessary for the care, protection and preservation of the Personalty and the Fixtures, in addition to, and not in limitation of, the other rights, remedies and recourses afforded by this Deed of Trust and the other Security Documents.

  

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 Section 7.18 Indemnity. In connection with any action taken by Trustee,
Beneficiary and/or any Holder pursuant to this Deed of Trust, Trustee, Beneficiary and/or any such Holder and their respective Indemnified Parties shall not be liable for any Loss sustained by Trustor, including those resulting from (a) any
assertion that Beneficiary, or any such Holder or/and such Indemnified Party has received funds from the operations of the Trust Property claimed by third Party, or (b) any act or omission of Trustee, Beneficiary, or any such Holder or any such
Indemnified Party in administering, managing, operating or controlling the Trust Property, including in either case such Loss as may result from the ordinary negligence of Trustee and/or Beneficiary or any other Holder or an Indemnified Party or
which may result from strict liability, whether under applicable law or otherwise, unless such Loss is caused by the gross negligence, willful misconduct or bad faith of Trustee and/or Beneficiary and/or such other Holder or such Indemnified Party,
nor shall Trustee, Beneficiary and/or any other Holder or an Indemnified Party be obligated to perform or discharge any obligation, duty or liability of Trustor. Trustor shall and does hereby agree to indemnify Trustee and/or Beneficiary and each of
the other Holders and their respective Indemnified Parties for, and to hold Trustee, Beneficiary and each such other Holder and each Indemnified Party harmless from, any and all Losses which may or might be incurred by Trustee and/or Beneficiary or
any of such other Holders or such Indemnified Parties by reason of this Deed of Trust or the exercise of rights or remedies hereunder, including such Losses as may result from the ordinary negligence of Trustee, Beneficiary or any other Holder or an
Indemnified Party, or which may result from strict liability, whether under applicable law or otherwise, unless such Loss is caused by the gross negligence, willful misconduct or bad faith Trustee, Beneficiary or such other Holder or such
Indemnified Party. Should Trustee, Beneficiary and/or any other Holder or an Indemnified Party make any expenditure on account of any such Losses, the amount thereof, including costs, expenses and reasonable attorneys’ fees, shall be a demand
obligation (which obligation Trustor hereby expressly promises to pay) owing by Trustor to Trustee and/or Beneficiary and shall be subject to the provisions of Section 9.07(b) hereof. Trustor hereby assents to, ratifies and confirms any
and all actions of Trustee and/or Beneficiary with respect to the Trust Property taken under this Deed of Trust. The liabilities of Trustor, as set forth in this Section 7.18, shall survive the termination of this Deed of Trust and the
payment and performance of the Obligations. 
 ARTICLE VIII 

TRUSTEE 

Section 8.01 Duties, Rights, and Powers of Trustee. It shall be no part of the duty of Trustee to see to any
recording, filing or registration of this Deed of Trust or any other instrument in addition or supplemental thereto, or to give any notice thereof, or to see to the payment of or be under any duty in respect of any tax or assessment or other
governmental charge which may be levied or assessed on the Trust Property, or any part thereof, or against Trustee, or to see to the performance or observance by Trustee of any of the covenants and agreements contained herein. Trustee shall not be
responsible for the execution, acknowledgment or validity of this Deed of Trust or of any instrument in addition or supplemental hereto or for the sufficiency of the 

 

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security purported to be created hereby, and makes no representation in respect thereof or in respect of the rights of Beneficiary. Trustee shall have the right to confer with counsel upon any
matters arising hereunder and shall be fully protected in relying as to legal matters on the advice of counsel. Trustee shall not incur any personal liability hereunder except for Trustee’s own gross negligence or willful misconduct, and
Trustee shall have the right to rely on any instrument, document or signature authorizing or supporting any action taken or proposed to be taken by Trustee hereunder, believed by Trustee in good faith to be genuine. 

Section 8.02 Successor Trustee. Trustee may resign by written notice addressed to Beneficiary or be removed at any
time with or without cause by an instrument in writing duly executed on behalf of Beneficiary. In case of the death, resignation or removal of Trustee, a successor trustee may be appointed by Beneficiary by instrument of substitution complying with
any applicable requirements of law, or, in the absence of any such requirement, without other formality than appointment and designation in writing. Written notice of such appointment and designation shall be given by Beneficiary to Trustee, but the
validity of any such appointment shall not be impaired or affected by failure to give such notice or by any defect therein. Such appointment and designation shall be full evidence of the right and authority to make the same and of all the facts
therein recited, and, upon the making of any such appointment and designation, this Deed of Trust shall vest in the successor trustee all the estate and title in and to all of the Trust Property, and the successor trustee shall thereupon succeed to
all of the rights, powers, privileges, immunities and duties hereby conferred upon Trustee named herein, and one such appointment and designation shall not exhaust the right to appoint and designate a successor trustee hereunder but such right may
be exercised repeatedly as long as any Obligations remain unpaid hereunder. To facilitate the administration of the duties hereunder, Beneficiary may appoint multiple trustees to serve in such capacity or in such jurisdictions as Beneficiary may
designate. 
 Section 8.03 Retention of Moneys. All moneys received by Trustee shall, until used or applied
as herein provided, be held in trust for the purposes for which they were received, but need not be segregated in any manner from any other moneys (except to the extent required by law), and Trustee shall be under no liability for interest on any
moneys received by Trustee hereunder. 
 ARTICLE IX  

MISCELLANEOUS 

Section 9.01 Instrument Construed as Mortgage, Etc. This Deed of Trust may be construed as a mortgage, deed of trust,
chattel mortgage, conveyance, assignment, security agreement, pledge, financing statement, hypothecation or contract, or any one or more of them, in order to fully effectuate the liens and security interests created hereby and the purposes and
agreements set forth herein. 
 Section 9.02 Performance at Trustor’s Expense. The cost and expense of
performing or complying with any and all of the Obligations shall be borne solely by Trustor, and no portion of such cost and expense shall be, in any way or to any extent, credited against any installment on or portion of the Obligations.

  

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 Section 9.03 Survival of Obligations. Each and all of the Obligations
shall survive the execution and delivery of this Deed of Trust and shall continue in full force and effect until all of the Obligations shall have been fully satisfied. 

Section 9.04 Further Assurances. Trustor, upon the request of Beneficiary, shall execute, acknowledge, deliver and
record and/or file such further reasonable instruments, including financing statements, and do such further acts as may be reasonably necessary, desirable or proper to carry out more effectively the purpose of this Deed of Trust and to subject to
the Liens and security interests hereof any property intended by the terms hereof to be covered hereby, including any renewals, additions, substitutions, replacements, betterments or appurtenances to the then Trust Property. 

Section 9.05 Notices. All notices or other communications required or permitted to be given pursuant to this Deed of
Trust shall be in writing and shall be considered properly given if given in the manner and to the addresses prescribed by Section 12.02 of the Indenture to the parties and at the addresses set forth in the first paragraph hereof, and to
each of the parties and at the addresses set forth in Section 12.02 of the Indenture; provided, however, that (a) service of notice as required by the laws of any State or Commonwealth in which portions of the Trust
Property may be situated shall for all purposes be deemed appropriate and sufficient with the giving of such notice thereunder, and (b) any party shall have the right to change its address for notice hereunder to any other location within the
continental United States by the giving of ten (10) days’ notice to the other party in the manner set forth above. 

Section 9.06 No Waiver. Any failure by Beneficiary to insist, or any election by Beneficiary not to insist, upon
strict performance by Trustor of any of the terms, provisions or conditions of this Deed of Trust shall not be deemed to be a waiver of the same or of any other terms, provision or condition hereof, and Beneficiary shall have the right, at any time
or times thereafter, to insist upon strict performance by Trustor of any and all of such terms, provisions and conditions. Subject to the terms and conditions of the Indenture, Beneficiary may, in Beneficiary’s sole and absolute discretion,
(i) in the case of a Default, determine whether such Default has been cured, and (ii) in the case of an Event of Default, accept or reject any proposed cure of an Event of Default. In no event shall any provision of this Deed of Trust or
any other Security Document which provides that Beneficiary shall have certain rights and/or remedies only during the continuance of an Event of Default be construed so as to require Beneficiary to accept a cure of any such Event of Default. Unless
and until Beneficiary accepts any proposed cure of an Event of Default, such Event of Default shall be deemed to be continuing for purposes of this Deed of Trust and the other Security Documents. 

Section 9.07 Beneficiary’s Right to Perform; Beneficiary’s Expenditures. 

(a) Trustor agrees that if Trustor fails to perform any act or take any action which Trustor is required to perform or take
hereunder or under the Indenture or to pay any money which Trustor is required to pay hereunder or under the Indenture, Beneficiary may, upon prior notice to Trustor, but shall not be obligated to, perform or cause to be performed such act or take
such action or pay such money. 
  

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 (b) All reasonable costs and expenses incurred by Beneficiary (or any Indemnified
Party), including, without limitation, reasonable attorneys fees and expenses, all monies paid by (or on behalf of) Beneficiary and the monetary value of all services performed by (or on behalf of Beneficiary) in connection with a Default or Event
of Default hereunder or under any other Security Document, including, without limitation, the (i) the enforcement of any term or provision of this Deed of Trust or any other Security Document, (ii) the performance by Beneficiary of any
obligation of Trustor under this Deed of Trust or any other Security Document if Beneficiary elects to so perform, in its sole and absolute discretion, and (iii) any action Beneficiary elects to take, in its sole and absolute discretion, to
protect its interest in or the value of the Trust Property, shall be a demand obligation owing by Trustor to Beneficiary, as the case may be, and to the extent any payment is made to a third Person, Beneficiary, upon making such payment, shall be
subrogated to all of the rights of the Person receiving such payment. Provided that an Event of Default shall have occurred and be continuing, all such costs and expenses, monies and the monetary value of such services performed shall (x) bear
interest at the Default Rate from the date of such incurrence, payment or performance, as applicable, until paid, and (y) constitute (together with such interest) a portion of the Obligations and shall be secured by this Deed of Trust and all
of the other Security Documents. If Beneficiary shall elect to pay any Imposition or other sums due with reference to the Trust Property, Beneficiary may do so in reliance on any bill, statement or assessment procured from the appropriate
governmental authority or other issuer thereof. 
 Section 9.08 Successors and Assigns. All of the terms
hereof shall apply to, be binding upon and inure to the benefit of the parties hereto, their successors, assigns, heirs and legal representatives, and all other Persons claiming by, through or under them; provided, however, that
nothing herein shall be deemed to imply any right on behalf of Trustor to assign its interest in any of the Trust Property except as may be expressly set forth in the Indenture. 

Section 9.09 Severability. This Deed of Trust is intended to be performed in accordance with, and only to the extent
permitted by, all applicable laws and regulations of applicable Governmental Authorities and the provisions hereof are intended to be limited to the extent necessary that they will not render this Deed of Trust invalid, unenforceable or not entitled
to be recorded, registered or filed under the provisions of any applicable law. If any provision hereof or the application thereof to any Person or circumstance shall, for any reason and to any extent, be invalid or unenforceable, neither the
remainder of this Deed of Trust nor the application of such provision to other Persons or circumstances shall be affected thereby, but rather shall be enforced to the greatest extent permitted by applicable law. 

Section 9.10 Subrogation of Trustee. This Deed of Trust is made with full substitution and subrogation of Trustee and
successors in this trust to Trustee and Trustee and such successors assigns in and to all covenants and warranties by others heretofore given or made in respect of the Trust Property or any part thereof. 

 

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 Section 9.11 Entire Agreement and Modification. This Deed of Trust may
not be amended, revised, waived, discharged, released or terminated orally, but only by a written instrument or instruments executed by the party against which enforcement of the amendment, revision, waiver, discharge, release or termination is
asserted. Any alleged amendment, revision, waiver, discharge, release or termination which is not so documented shall not be effective as to any party. 

Section 9.12 Applicable Law. THIS DEED OF TRUST SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE IN WHICH THE TRUST PROPERTY IS LOCATED; PROVIDED, HOWEVER, THAT THE INDENTURE IS, BY ITS TERMS, GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK AS PROVIDED THEREIN, AND, IN THE EVENT THAT IT BECOMES
NECESSARY, IN CONNECTION WITH THE ENFORCEMENT OF THIS DEED OF TRUST OR OTHERWISE, TO CONSTRUE OR ENFORCE THE OBLIGATIONS (WHICH OBLIGATIONS ARE SECURED BY THIS DEED OF TRUST), THE INDENTURE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF NEW YORK. 
 Section 9.13 Satisfaction of Prior Encumbrance. To the extent
that proceeds advanced pursuant to the Indenture are used to pay indebtedness secured by any outstanding Lien, security interest, charge or prior encumbrance against the Trust Property, such proceeds shall be deemed to have been advanced by
Beneficiary at Trustor’s request, and, provided such advances were made in accordance with applicable provisions of the Indenture, Beneficiary shall be subrogated to any and all rights, security interests and Liens owned by any owner or holder
of such outstanding Liens, security interests, charges or encumbrances, irrespective of whether said Liens, security interests, charges or encumbrances are released, and it is expressly understood that, in consideration of the payment of such other
indebtedness by Beneficiary, Trustor hereby waives and releases all demands and causes of action for offsets and payments to, upon and in connection with the said indebtedness. 

Section 9.14 No Partnership. Nothing contained in this Deed of Trust is intended to, or shall be construed to,
create to any extent and in any manner whatsoever any partnership, joint venture, or association between Trustor and Beneficiary, or in any way make Beneficiary a co-principal with Trustor with reference to the Trust Property, and any inferences to
the contrary are hereby expressly negated. 
 Section 9.15 Headings. The Article, Section and Subsection
headings hereof are inserted for convenience of reference only and shall in no way alter, modify or define, or be used in construing, the text of such Articles, Sections or Subsections. 

Section 9.16 Release of Deed of Trust. If all of the Obligations shall be paid, performed and discharged and the
Indenture (and the commitments thereunder) is terminated, Beneficiary shall forthwith cause satisfaction and discharge of this Deed of Trust to be entered upon the record, and shall execute and deliver (or cause to be executed and delivered) such
instruments of satisfaction and discharge as may be appropriate, such instruments to be duly 
  

 - 29 - 

 
acknowledged and in form for recording. Trustor shall pay the reasonable out-of-pocket costs incurred by Beneficiary in discharging, releasing and/or terminating this Deed of Trust and any other
instruments related hereto, including, but not limited to, any financing statements. 
 Section 9.17 Limitation
of Obligations with Respect to Trust Property. 
 (a) Neither Trustee, Beneficiary nor any Holder shall have any duty
to protect or preserve, or any liability with respect to the protection or preservation of, any Trust Property or to preserve rights pertaining thereto other than the duty to use reasonable care in the custody and preservation of any Trust Property
in its actual possession. Beneficiary shall be deemed to have exercised reasonable care in the custody and preservation of any Trust Property in its possession if such Trust Property is accorded treatment substantially equal to that which
Beneficiary accords its own like property. Beneficiary shall be relieved of all responsibility for any Trust Property in its possession upon surrendering it, or tendering surrender of it, to Trustor or to such other Person entitled thereto by
applicable law. 
 (b) Nothing contained in this Deed of Trust shall be construed as requiring or obligating Trustee,
Beneficiary or any Holder, and neither Trustee, Beneficiary nor any Holder shall be required or obligated, to (i) make any demand or inquiry as to the nature or sufficiency of any payment received by it, or present or file any claim or notice
or take any action with respect to any Trust Property or the monies due or to become due thereunder in connection therewith, (ii) ascertain or take action with respect to calls, conversions, exchanges, maturities, tenders, offers or other
matters relating to any Trust Property, whether or not Beneficiary or any of the other Holders has or is deemed to have knowledge or notice thereof, (iii) take any necessary steps to preserve rights against any prior parties with respect to any
Trust Property, or (iv) notify Trustor or any other Person of any decline in the value of any Trust Property. 

Section 9.18 Inconsistency with Indenture. To the fullest extent possible, the terms and provisions of the Indenture
shall be read together with the terms and provisions of this Deed of Trust such that the terms and provisions of this Deed of Trust shall supplement, rather than conflict with, the terms and provisions of the Indenture; provided,
however, that, notwithstanding the foregoing, in the event any of the terms or provisions of this Deed of Trust conflict with any of the terms or provisions of the Indenture, such that it is impractical for such terms or provisions to
coexist, the terms or provisions of the Indenture shall govern and control for all purposes; and, provided further, that the inclusion in this Deed of Trust of terms and provisions, supplemental rights or remedies in favor of a secured
party but which are not addressed in the Indenture shall not be deemed to be a conflict with the Indenture and all such additional terms, provisions, supplemental rights or remedies contained herein shall be given full force and effect. 

Section 9.19 Limitation on Interest Payable. It is the intention of the parties to conform strictly to the usury laws,
whether state or federal, that are applicable to the transaction of which this Deed of Trust is a part. All agreements between Trustor and Beneficiary, or any Holder, whether now existing or hereafter arising and whether oral or written, are hereby
expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be paid by Trustor for the use, forbearance or detention of the money to be loaned under the 

 

 - 30 - 

 
Indenture or any other Security Document, or for the payment or performance of any covenant or obligation contained herein or in the Indenture or any other Security Document, exceed the maximum
amount permissible under applicable federal or state usury laws. If, under any circumstances, fulfillment of any such provision, at the time performance of such provision shall be due, shall involve exceeding the limit of validity prescribed by
applicable law, then the obligation to be fulfilled shall be reduced to the limit of such validity. If, under any circumstances, Trustor shall have paid an amount of money which is deemed to be interest and such interest would exceed the highest
lawful rate, such amount that would be excessive interest under applicable usury laws shall be applied to the reduction of the principal amount owing in respect of the Obligations and not to the payment of interest, or if such excessive interest
exceeds the unpaid balance of principal and any other amounts due hereunder, the excess shall be refunded to Trustor. All sums paid or agreed to be paid for the use, forbearance or detention of the principal under any extension of credit by
Beneficiary (or any Holder) shall, to the extent permitted by applicable law, and to the extent necessary to preclude exceeding the limit of validity prescribed by applicable law, be amortized, prorated, allocated and spread from the date of this
Deed of Trust until payment in full of the Obligations so that the actual rate of interest on account of such principal amounts is uniform throughout the term hereof. 

Section 9.20 Covenants To Run With the Land. All of the grants, representations, warranties, undertakings, covenants,
terms, provisions and conditions in this Deed of Trust shall run with the Land and shall apply to and bind the successors and assigns of Trustor. If there shall be more than one trustor, the covenants, representations and warranties made herein
shall be deemed to be joint and several. 
 Section 9.21 Amount Secured; Last Dollar. So long as the balance
of the Obligations exceeds the portion of the Obligations secured by this Deed of Trust, no payment on account of the Obligations shall be deemed to be applied against or to reduce the portion of the Obligations secured by this Deed of Trust, but
shall, instead, be deemed to be applied against only such portions of the Obligations that are not secured by this Deed of Trust. 

Section 9.22 Defense of Claims. Trustor shall promptly notify Beneficiary in writing of the commencement of any legal
proceedings materially affecting Trustor’s title to the Trust Property or Beneficiary’s Lien on or security interest in the Trust Property, or any part thereof, and shall take all such action, employing attorneys reasonably agreeable to
Beneficiary, as may be necessary to preserve Trustor’s and Beneficiary’s rights affected thereby. If Trustor fails or refuses to adequately or vigorously, in the reasonable judgment of Beneficiary, defend Trustor’s or
Beneficiary’s rights to the Trust Property, Beneficiary may take such action on behalf of and in the name of Trustor and at Trustor’s expense. Moreover, Beneficiary may take (or cause its agents to take) such independent action in
connection therewith as they may in their discretion deem proper, including, without limitation, the right to employ independent counsel and to intervene in any suit affecting the Trust Property. All costs, expenses and reasonable out-of-pocket
attorneys’ fees incurred by Beneficiary (or its agents) pursuant to this Section 8.21 or in connection with the defense by Beneficiary of any claims, demands or litigation relating to Trustor, the Trust Property or the transactions
contemplated in this Deed of Trust shall be paid by Trustor on demand, plus interest thereon from the date of the advance by Beneficiary until reimbursement of Beneficiary at the Default Rate. 

 

 - 31 - 

 Section 9.23 Exculpation Provisions. EACH OF THE PARTIES HERETO
SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS DEED OF TRUST; AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS DEED OF TRUST; THAT IT HAS IN FACT READ THIS DEED OF TRUST AND IS FULLY INFORMED AND HAS FULL NOTICE AND
KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS DEED OF TRUST; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS DEED OF TRUST AND HAS RECEIVED THE ADVICE OF
ITS ATTORNEY IN ENTERING INTO THIS DEED OF TRUST; AND THAT IT RECOGNIZES THAT CERTAIN TERMS OF THIS DEED OF TRUST RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS
RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS DEED OF TRUST ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH
PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.” 
 Section 9.24 No Merger of Estates. So
long as any part of the Obligations remain unpaid, unperformed or undischarged, and the commitments under the Indenture have not been terminated, the fee, easement and leasehold estates to the Trust Property shall not merge but rather shall remain
separate and distinct, notwithstanding the union of such estates either in Trustor, Beneficiary, any lessee, any third-party purchaser or otherwise. 

ARTICLE X 

STATE SPECIFIC PROVISIONS 

Section 10.01 Power of Sale. Beneficiary may elect to foreclose by exercise of the power of sale contained herein, in
which event Beneficiary shall notify Trustee and shall, if required, deposit with Trustee the Indenture, the original or a certified copy of this Deed of Trust, and such other documents, receipts and evidences of expenditures made and secured hereby
as Trustee may require. Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded and delivered to Trustor such notice as may then be required by law and this Deed of Trust. Trustee shall, without demand on Trustor, after
lapse of such time as may then be required by law and after recordation of such notice of default and after notice of sale has been given as required by law, sell any of the Trust Property at the time and place of sale fixed by it in said notice of
sale, either as a whole or in separate lots of parcel or items as Trustee shall deem expedient, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States payable at the time of sale.
Trustee shall deliver to the purchaser or purchasers at such sale its good and sufficient deed or deeds conveying the Trust 
  

 - 32 - 

 
Property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person,
including, without limitation, Trustor, Trustee or Beneficiary, may purchase at such sale, and Trustor hereby covenants to warrant and defend the title to the Trust Property on behalf of such purchaser or purchasers. Trustee may postpone the sale of
all or any portion of the Trust Property from time to time in accordance with the laws of the State of California. Beneficiary may from time to time rescind any notice of default or notice of sale before any Trustee’s sale as provided above in
accordance with the laws of the State of California. 
 Section 10.02 Trustor Notice Address. Trustor hereby
requests that a copy of any notice of default or notice of sale as may be required by law, which affects any of the Trust Property, be mailed to Trustor at the address referenced in Section 2.04 hereof. Otherwise, neither Trustee nor
beneficiary is under any obligation to notify any person or entity of any action or proceeding of any kind in which Trustor, Beneficiary and/or Trustee shall be a party, unless brought by Trustee, or of any pending sale under any other deed of
trust, except as may otherwise be required by law or required hereunder. 
 Section 10.03 Co-Borrower
Provision. 
 (a) As used in this Section 10.03, the term “Co-Borrower” shall mean any one of the
following: Pierce Hardy Limited Partnership, a Pennsylvania limited partnership, and Hardy Management Company, Inc., a Nevada corporation; and the term “Co-Borrowers” shall mean any two or more of such Co-Borrowers, collectively. If only
one Co-Borrower holds title to the Trust Property, the representations, warranties, covenants and agreements set forth in this Section shall be interpreted as being made by only that Co-Borrower. 

(b) Each Co-Borrower agrees that it is jointly and severally liable to Beneficiary for the payment of all obligations arising
under this Deed of Trust and the other Security Documents, and that such liability is independent of the obligations of the other Co-Borrower. Beneficiary may bring an action against any Co-Borrower, whether or not an action is brought against the
other Co-Borrower. 
 (c) Each Co-Borrower agrees that any release which may be given by Beneficiary to the other
Co-Borrower will not release such Co-Borrower from its obligations under this Deed of Trust or any of the other Security Documents. 

(d) Each Co-Borrower waives any right to assert against Beneficiary any defense, setoff, counterclaim or claim that such
Co-Borrower may have against the other Co-Borrower or any other party liable to Beneficiary for the obligations of the Co-Borrower under this Deed of Trust or any of the other Security Documents. 

(e) Each Co-Borrower agrees that it is solely responsible for keeping itself informed as to the financial condition of the other
Co-Borrower and of all circumstances which bear upon the risk of nonpayment. Each Co-Borrower waives any right it may have to require Beneficiary to disclose to such Co-Borrower any information that Beneficiary may now or hereafter acquire
concerning the financial condition of the other Co-Borrower. 
  

 - 33 - 

 (f) Each Co-Borrower waives all rights to notices of default or nonperformance by the
other Co-Borrower under this Deed of Trust and the other Security Documents. Each Co-Borrower further waives all rights to notices of the existence or the creation of new indebtedness by the other Co-Borrower. 

(g) Each Co-Borrower represents and warrants to Beneficiary that each will derive benefit, directly and indirectly, from the
collective administration and availability of the Loan under this Deed of Trust and the other Security Documents. Each Co-Borrower agrees that Beneficiary will not be required to inquire as to the disposition by the other Co-Borrower of funds
disbursed in accordance with the terms of the Security Documents. 
 (h) Until all obligations of Co-Borrowers to
Beneficiary under the Security Documents have been paid in full, each Co-Borrower waives any right of subrogation, reimbursement, indemnification and contribution (contractual, statutory or otherwise), including any claim or right of subrogation
under the Bankruptcy Code (Title 11, United States Code) or any successor statute, that such Co-Borrower may now or hereafter have against the other Co-Borrower with respect to the indebtedness incurred under the Security Documents. Each Co-Borrower
waives any and all rights and defenses that are or may become available to such Co-Borrower by reason of California Civil Code Sections 2787 to 2855, inclusive. Each Co-Borrower waives any right to enforce any remedy which Beneficiary now has or may
hereafter have against the other Co-Borrower, and waives any benefit of, and any right to participate in, any security now or hereafter held by Beneficiary. 

(i) Each Co-Borrower waives all rights and defenses arising out of an election of remedies by Beneficiary, even though that
election of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed such Co-Borrower’s rights of subrogation and reimbursement against the other Co-Borrower by the operation of
Section 580d of the California Code of Civil Procedure or otherwise. 
 (j) Each Co-Borrower waives all rights and
defenses that such Co-Borrower may have because the Obligations are secured by real property. This means, among other things: 

(i) Beneficiary may collect from each Co-Borrower (including enforcing one or more Deeds of Trust against such
Co-Borrower’s interest in the Trust Property) without first foreclosing on any real or personal property collateral pledged by the other Co-Borrower. 

(ii) If Beneficiary forecloses on any real property collateral pledged by any Co-Borrower: 

(A) If Beneficiary forecloses on any real property collateral pledged by any Co-Borrower: 

(B) Beneficiary may collect from each Co-Borrower (including enforcing one or both of the Deed of Trust against such
Co-Borrower’s 
  

 - 34 - 

 
interest) even if Beneficiary, by foreclosing on the real property collateral pledged by the other Co-Borrower, has destroyed any right such Co-Borrower may have to collect from the other
Co-Borrower. 
 This clause (j) is an unconditional and irrevocable waiver of any rights and defenses each Co-Borrower may have because
Obligations are secured by real property. These rights and defenses include, but are not limited to, any rights or defenses based upon Section 580a, 580b, 580d, or 726 of the California Code of Civil Procedure. 

(k) Each Co-Borrower hereby waives any election of remedies by Beneficiary that impairs any subrogation or other right of such
Co-Borrower to proceed against the other Co-Borrower or other person, including any loss of rights resulting from any applicable anti deficiency laws relating to nonjudicial foreclosures of real property or other laws limiting, qualifying or
discharging obligations or remedies, including the defense to enforcement of this Deed of Trust (the so called “Gradsky” defense) which, absent this waiver, each Co-Borrower might have by virtue of an election by Beneficiary to conduct a
nonjudicial foreclosure sale under this Deed of Trust, it being understood by each Co-Borrower that any such nonjudicial foreclosure sale could destroy, by operation of California Code of Civil Procedure Section 580d, all rights of any party to
a deficiency judgment against each Co-Borrower, and, as a consequence, could destroy all rights which each Co-Borrower might otherwise have (including the rights of subrogation, reimbursement, indemnity and contribution) to proceed against the other
Co-Borrower. 
 Section 10.04 Limitation of Obligations. Notwithstanding anything contained herein, for
purposes of this Deed of Trust, the “Obligations” shall not include any indebtedness, obligations, and liabilities of any Guarantor. 

[No Further Text On This Page; Signature Page Follows] 

 

 - 35 - 

 IN WITNESS WHEREOF, the undersigned, by its member, pursuant to proper authority of its
operating agreement and/or bylaws, has duly executed, sealed, acknowledged and delivered this instrument as of the day and year first above written. 
  

			
	PHOTO RESEARCH, INC.,
	a Delaware corporation
		
	By:	 	 /s/ Anthoni Bellantuoni

		 	Name: Anthoni Bellantuoni
		 	Title: Director, Assistant Secretary

			
	 STATE OF  MASSACHUSETTS
	  	 )

		  	 )    ss:

	 COUNTY OF  MIDDLESEX
	  	 )

 On July 16, 2010
before me, Paula Pluta (here insert name of the officer), Notary Public, personally appeared Anthony Bellantuoni, 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. 

 

	
	 /s/ Paula A. Pluta

	Notary Public Signature

 (Seal)

 EXHIBIT A 

LEGAL DESCRIPTION 

Lot 1 of Tract Number 44645, in the city of Los Angeles, state of California, as per map recorded in Book 1130 Pages 9 and 10 of Maps, in
the Office of the County Recorder of said county. 

 AFTER RECORDING RETURN TO: 

Gregory P. Pressman, Esq. 
 Schulte
Roth & Zabel LLP 
 919 Third Avenue 

New York, New York 10022 
  

 
  

Document Title(s): (or transactions contained therein) 

1. DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING 

2.
                                         
                                         
                                         
                               

3.
                                         
                                         
                                         
                              

4.
                                         
                                         
                                         
                              

Reference Number(s) of Documents assigned or released: 

                                         
                                         
                                         
                                  

 ̈ Additional numbers on page
                     of document 

Grantor(s): (Last name first, then first name and initials) 

1. SYNRAD, INC. 
 2.
                                        
                                         
                                         
                               

3.
                                        
                                         
                                         
                               

 ̈ Additional names on page
                     of document 

Grantee(s): (Last name first, then first name and initials) 

1. THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. 

2.
                                        
                                         
                                         
                               

3.
                                        
                                         
                                         
                               

 ̈ Additional names on page
                     of document 

Abbreviated Legal Description as follows: Lot 4 of Binding Site Plan, recorded in the records of Snohomish County, Washington, under Recording
Number 200008295004, being a portion of Lot 26, Harbour Pointe Business Center-North Campus. 

 ̈ Complete legal description is on page A-1 of document 

Assessor’s Property Tax Parcel/Account Number(s): Tax Account Number 00-7884-000-026-03 

NOTE: The auditor/recorder will rely on the information on the form. The staff will not read the document to verify the accuracy or completeness of
the indexing information provided herein.f8k071910ex10i_clearlite.htm

Exhibit 10.1

 

 

 CONVERTIBLE PROMISSORY NOTE

$650,000 PLUS INTEREST DUE & PAYABLE

DOCUMENT A-07192010

THIS NOTE AND THE SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE AND THE SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR APPLICABLE EXEMPTION OR SAFE HARBOR PROVISION.

FOR VALUE RECEIVED, on the Effective Date, as defined below on the signature page, Clear-Lite Holdings, Inc. as Obligor ("Borrower,” or “Obligor”), hereby promises to pay to the Lender (“Lender” or “Holder”), as defined below on the signature page, the Principal Sum, as defined below, along with the Interest Rate, as defined below, according to the terms herein.

 

	
 

The "Lender" shall be:

	
 

JMJ Financial / Its Principal, or Its Assignees

 

	
 

The "Principal Sum" shall be:

	
 

$650,000 (six hundred fifty thousand US Dollars) Subject to the following: accrued, unpaid interest shall be added to the Principal Sum.

 

	
 

The “Consideration” shall be:

 

	
 

$650,000 (six hundred fifty thousand US dollars) in the form of cash payment by wire or check as set forth in the attached Funding Schedule and corresponding Registration Rights Agreement.

 

	
 

The "Interest Rate" shall be:

	
 

10% one-time interest charge on the Principal Sum.   No interest or principal payments are required until the Maturity Date, but both principal and interest may be included in conversion prior to maturity date.

 

	
 

The "Conversion Price" shall be the following price:

	
 

As applied to the Conversion Formula set forth in 2.2, the lesser of (a) $0.10 or 65% (sixty five percent) of the average of the two lowest closing prices in the 22 trading days prior to the conversion; as applies to Clear-Lite Holdings, Inc. voting common stock.

 

	
 

The "Maturity Date" is the date upon which the Principal Sum of this Note, as well as any unpaid interest shall be due and payable, and that date shall be:

 

	
 

July 19, 2013

	
 

Registration Rights shall be:

 

	
 

Registration rights of the common shares underlying this note are set forth in the corresponding Registration Rights Agreement.

 

	
 

The “Prepayment Terms” shall be:

	
 

Prepayment is not permitted without the consent of the Lender.

 

  

  

  

 

ARTICLE 1 PAYMENT-RELATED PROVISIONS

1.1  Interest Rate. Subject to the Holder's right to convert, interest payable on this Note will accrue interest at the Interest Rate and shall be applied to the Principal Sum.

 

1.2 Payable on Demand.  This Note is payable on demand in an amount not to exceed the cash amount paid in as set forth in the attached Funding Schedule.

 

ARTICLE 2 CONVERSION RIGHTS

The Holder will have the right to convert the Principal Sum and accrued interest under this Note into Shares of the Borrower's Common Stock as set forth below.

2.1 Conversion Rights and Cashless Exercise. Subject to the terms set forth in Section 2.7, the Holder will have the right at its election from and after the Effective Date, and then at any time, to convert all or part of the outstanding and unpaid Principal Sum and accrued interest into shares of fully paid and nonassessable shares of common stock of Clear-Lite Holdings, Inc. (as such stock exists on the date of issuance of this Note, or any shares of capital stock of Clear-Lite Holdings, Inc.  into which such stock is hereafter changed or reclassified, the "Common Stock") as per the Conversion Formula set forth in Section 2.2. Any such conversion shall be cashless, and shall not require further payment from Holder.  Unless otherwise agreed in writing by both the Borrower and the Holder, at no time will the Holder convert any amount of the Note into common stock that would result in the Holder owning more than 4.99% of the common stock outstanding of Clear-Lite Holdings, Inc.   Shares from any such conversion will be delivered to Holder by 2:30pm EST within 3 (three) business days of conversion notice delivery (see 3.1) by “DWAC/FAST” electronic transfer (see “Share Delivery” attachment).

2.2. Conversion Formula. The number of shares issued through conversion is the conversion amount divided by the conversion price.

# Shares = Conversion Amount

     Conversion Price

2.3. This section 2.3 intentionally left blank.

2.4. This section 2.4 intentionally left blank.

2.5 Reservation of Shares. As of the issuance date of this Note and for the remaining period during which the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of Common Stock upon the full conversion of this Note. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. The Borrower agrees that its issuance of this Note constitutes full authority to its officers, agents and transfer agents who are charged with the duty of executing and issuing stock certificates to execute and issue the necessary certificates for shares of Common Stock upon the conversion of this Note.

 

 

  

  

  

 

2.6. Delivery of Conversion Shares.  Shares from any such conversion will be delivered to Holder by 2:30pm EST within 3 (three) business days of conversion notice delivery (see 3.1) by “DWAC/FAST” electronic transfer (see “Share Delivery” attachment).  If those shares are not delivered in accordance with this timeframe stated in this Section 2.6, at any time for any reason prior to offering those shares for sale in a private transaction or in the public market through its broker, Holder may rescind that particular conversion to have the conversion amount returned to the note balance with the conversion shares returned to the Borrower. The Company will make its best efforts to deliver shares to Holder same day / next day.

2.7. This section 2.7 intentionally left blank.

 

ARTICLE 3 MISCELLANEOUS

3.1. Notices. Any notice required or permitted hereunder must be in writing and either personally served, sent by facsimile or email transmission, or sent by overnight courier.  Notices will be deemed effectively delivered at the time of transmission if by facsimile or email, and if by overnight courier the business day after such notice is deposited with the courier service for delivery.

3.2. Amendment Provision. The term "Note" and all reference thereto, as used throughout this instrument, means this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented.

3.3. Assignability. This Note will be binding upon the Borrower and its successors and permitted assigns, and will inure to the benefit of the Holder and its successors and permitted assigns, and may be assigned by the Holder.

3.4. Governing Law. This Note will be governed by, and construed and enforced in accordance, with the laws of the State of Florida, without regard to the conflict of laws principles thereof.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Florida or in the federal courts located in Miami-Dade County, in the State of Florida.  Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.

3.5. Maximum Payments. Nothing contained herein may be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum will be credited against amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

3.6. Attorney Fees. In the event any attorney is employed by either party to this Note with regard to any legal or equitable action, arbitration or other proceeding brought by such party for the enforcement of this Note or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Note, the prevailing party in such proceeding will be entitled to recover from the other party reasonable attorneys' fees and other reasonable costs and expenses incurred, in addition to any other relief to which the prevailing party may be entitled.

 

 

  

  

  

 

3.7. No Public Announcement. Except as required by law, no public announcement may be made regarding this Note, payments, or conversions without written permission by both Borrower and Holder.

3.8. Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Note, Holder has the right to have any such opinion provided by its counsel.  Holder also has the right to have any such opinion provided by Borrower’s counsel.

3.9. Director’s Resolution.  Once effective, Borrower will execute and deliver to Holder a copy of a Board of Director’s resolution resolving that this note is validly issued, paid, and effective.

BORROWER[S]:                                                                           

	 	 	 	 	 
	
/s/ Thomas Irvine    

	 	 	
/s/ Paul Niedermeyer

	 
	
Thomas Irvine

	 	 	
Paul Niedermeyer

	 
	
CEO

Clear-Lite Holdings, Inc.

	 	 	
VP of Operations

Clear-Lite Holdings, Inc.

	 

               

LENDER/HOLDER:

 

/s/ JMJ Financial                                                                    

JMJ Financial / Its Principal

  

  

  

 

FUNDING SCHEDULE

	
§  

	
$115,000 paid to borrower within 5 business days of execution and closing of this agreement.

	
§  

	
$50,000 paid to Borrower within 5 business days of filing of the registration statement, and that registration statement must be filed within 30 days of the execution of this agreement.

	
§  

	
$50,000 paid to Borrower within 5 business days of the earlier of (a) filing of the first amended registration statement or (b) the SEC declaring the registration statement effective.

	
§  

	
$150,000 paid to Borrower within 10 business days of notice of effective registration statement, and that registration statement must be effective no later than 135 days from the execution of this agreement.

	
§  

	
$150,000 paid to Borrower within 30 business days of notice of effective registration statement, and that registration statement must be effective no later than 135 days from the execution of this agreement.

	
§  

	
$135,000 paid to Borrower within 60 business days of notice of effective registration statement, and that registration statement must be effective no later than 135 days from the execution of this agreement.

 

Conditions to Funding Each Payment:

	
§  

	
If at the time of an payment the Borrower’s common stock is less than $0.05 per share, the Holder shall fund that payment adjusted as follows:

Adjusted Payment = (current share price/$0.05)*scheduled payment amount

For example, if at the time of the second $50,000 payment the share price is $0.03 per share, then the adjusted payment would be ($0.03/$0.05)*$50,000 = $30,000

	
§  

	
At the time of each payment interval, the total dollar trading volume of Borrower’s common stock for the previous 22 trading days must be at least $500,000 (five hundred thousand).

	
o  

	
If within 90 days from the date of this agreement, then this condition will not apply to the first three payments ($115,000, $50,000, and $50,000).

	
o  

	
If beyond 90 days from the date of this agreement, then this condition will apply to the first three payments ($115,000, $50,000, and $50,000).

	
o  

	
This condition will apply to the last three payments ($150,000, $150,000, and $135,000) at all times.

	
§  

	
At the time of each payment interval, there shall not exist an event of default as described within any of the agreements between Borrower and Holder.

 

  

  

  

 

 

SAMPLE

NOTICE OF CONVERSION

(To be executed by the Holder in order to convert the Note)

The undersigned hereby elects to convert a portion of the Note issued by Clear-Lite Holdings, Inc. into Shares of Common Stock of Clear-Lite Holdings, Inc. according to the conditions set forth in such Note, as of the date written below.

Date of Conversion:________________________________________________

Conversion Amount:__________________________________________________

Conversion Price:__________________________________________________

Shares To Be Delivered:_____________________________________________

Signature:________________________________________________________

Print Name:______________________________________________________

Address:________________________________________________________

_______________________________________________________________

 _______________________________________________________________

Shares from any such conversion will be delivered to Holder by 2:30pm EST within 3 (three) business days of conversion notice by “DWAC/FAST” electronic transfer in accordance with Section 2.6.

 

 

 

  

  

  

 

 

SHARE DELIVERY ATTACHMENT

EXAMPLE

2.6. Delivery of Conversion Shares.  Shares from any such conversion will be delivered to Holder by 2:30pm EST within 3 (three) business days of conversion notice delivery (see 3.1) by “DWAC/FAST” electronic transfer (see “Share Delivery” attachment).  If those shares are not delivered in accordance with this timeframe stated in this Section 2.6, at any time for any reason prior to offering those shares for sale in a private transaction or in the public market through its broker, Holder may rescind that particular conversion to have the conversion amount returned to the note balance with the conversion shares returned to the Borrower. The Company will make its best efforts to deliver shares to Holder same day / next day.

Example:

Holder delivers conversion notice to Borrower at 5:15pm eastern time on Monday January 1st.

Borrower’s transfer agent must deliver shares to Holder’s broker via “DWAC/FAST” electronic transfer by no later than 2:30pm eastern time on Thursday January 4th.

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