Document:

Exhibit
10.4

 

UPON RECORDING, RETURN TO:

Texans
Commercial Capital, LLC

777
East Campbell Road, Suite 650

Richardson,
Texas  75081

Attention:  Linda
Robertson

THIS INSTRUMENT SHALL ALSO

CONSTITUTE A FIXTURE FILING

DEED OF TRUST,
SECURITY AGREEMENT, FINANCING

STATEMENT, AND ASSIGNMENT OF RENTAL

	
  THE STATE OF COLORADO

  	
  §

  	
   

  
	
   

  	
  §

  	
  KNOW ALL PERSONS BY THESE PRESENTS:

  
	
  COUNTY OF SAN
  MIGUEL

  	
  §

  	
   

  

 

THIS DEED OF TRUST, SECURITY
AGREEMENT, FINANCING STATEMENT, AND ASSIGNMENT OF RENTAL is executed on the
date of acknowledgment to be effective as of September 29, 2006, by BEHRINGER
HARVARD MOUNTAIN VILLAGE, LLC, a Colorado limited liability company, whose
address is 15601 Dallas Parkway, Suite 600, Addison, Texas 75001 (“Grantor”),
to the Public Trustee of San Miguel County, Colorado (“Trustee”), for
the benefit of TEXANS COMMERCIAL CAPITAL, LLC, a Texas limited liability
company (“Beneficiary”), whose address is 777 E. Campbell Road,
Suite 650, Richardson, Texas 75081.

ARTICLE I

DEFINITIONS

Section 1.1.            As used herein, the
following terms shall have the definitions assigned to them as follows:

“Beneficiary” has the
meaning assigned to it in the preamble hereof.

“Code” means the Uniform
Commercial Code as adopted in the state of Colorado

“Collateral” means all of
Grantor’s right, title, and interest, now owned or hereafter acquired, in and
to the following described properties and interests:

(1)           All portions of the
Personal Property which are either fixtures or personal property, tangible or
intangible; and

(2)           All building
materials, equipment, machinery and other items of personal property of any
kind or character now or hereafter related to, situated upon or used, or
acquired for use, upon or in connection with any part of the Real Estate; and

(3)           All revenues,
receipts, income, accounts, accounts receivable and other receivables arising
under, out of, in connection with or related to the Real Estate and including,
without 

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limitation, revenues, receipts, income, receivables and accounts
relating to or arising from rentals and rent equivalent income and time share
income; and

(4)           All insurance,
accounts, inventory, instruments, chattel paper, documents, consumer goods,
insurance proceeds, Leases, contract rights and general intangibles now, or
hereafter related to, any of the Real Estate, including, without limitation,
the following:

(A)          All contracts now or
hereafter entered into by and between Grantor, as owner, and any contractor, or
any other party, as well as all right, title, and interest of Grantor in, to,
and under any subcontracts, providing for the construction (original,
restorative or otherwise) of any of the Improvements, and of any other
buildings, structures or improvements to, or on, the Real Estate (or any part
thereof), or the furnishing of any materials, supplies, equipment, or labor in
connection with any such construction;

(B)           All of the plans,
specifications, and drawings (including, without limitation, plot plans,
foundation plans, utility facilities plans, floor plans, elevations plans,
framing plans, cross-sections of walls plans, mechanical plans,
electrical plans, architectural and engineering plans and specifications, and
architectural and engineering studies and analyses) heretofore or hereafter
prepared by any architect or engineer with respect to any of the Real Estate;

(C)           All agreements now
or hereafter entered into with any party with respect to architectural,
engineering, management, brokerage, promotional, marketing, or consulting
services rendered or to be rendered, with respect to the planning, design,
inspection, or supervision of the construction, development, management,
marketing, promotion, leasing, operation, or sale of any of the Real Estate and
including, without limitation, the Approved Management Agreement;

(D)          Any completion bonds,
performance bonds, labor and material payment bonds, and any other bonds (and
the proceeds therefrom) relating to any of the Real Estate or to any contract
providing for construction of any of the Improvements or any other buildings, structures,
or improvements to, or on, any of the Real Estate;

(E)           All rights or awards
due to Grantor arising out of any eminent domain proceedings for the taking or
for loss of value of any of the Real Estate;

(F)           All Rentals;

(G)           All of Grantor’s
right, title and interest in and to all trademarks, trade names, or symbols
under which any of the Real Estate is operated or the business of Grantor at
the Real Estate is conducted and all agreements now or hereafter entered into
by Grantor with respect thereto;

(H)          All revenues,
receipts, income, accounts, accounts receivable and other receivables arising
out of the leasing or operation of, or the business conducted at or in relation
to, any of the Real Estate;

(I)            All monetary
deposits which Grantor has been, or may be, required to give to any public or
private utility with respect to utility services furnished, or to be furnished,
to the Real Estate;

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(J)            All rights to
payment from any consumer credit/charge card organization or entity (such as or
similar to the organizations or entities which sponsor and administer the
American Express, Carte Blanche, Diner’s Club, Visa, the Discover Card and
Mastercard cards);

(K)          All contracts of sale
and options relating to the disposition of any of the Real Estate;

(L)           All products and
proceeds arising by virtue of any transaction related to the disposition of any
of the Mortgaged Property;

(M)         All deposits of cash,
securities, or other property which may be held at any time, and from time to
time, by Grantor to secure the performance by each Lessee of such Lessee’s
covenants, agreements, and obligations under any Lease;

(N)          To the extent
assignable, all permits, licenses (including, without limitation, liquor
licenses), franchises, certificates, and other rights and privileges obtained
by Grantor in connection with the Mortgaged Property;

(O)          The balance of every
deposit account (now or hereafter existing) of Grantor with Beneficiary (or any
agent, affiliate, or subsidiary of Beneficiary) and any other claim of Grantor
against Beneficiary (now or hereafter existing) and all money, instruments,
securities, documents, chattel paper, credits, demands, and any other property,
rights, or interests of Grantor which at any time shall come into the
possession, custody, or control of Beneficiary (or any agent, affiliate, or
subsidiary of Beneficiary);

(P)           All proceeds payable
or to be payable under each policy of insurance relating to the Real Estate
and/or the Personal Property;

(Q)          the Declarant Rights;
and

(R)           All books, records,
computer programs, tapes, discs, computer software and other like records and
information evidencing, securing, relating to or concerning the Real Estate,
the Personal Property, and the property described in clauses (1), (2), (3) and
(4) (A) through (Q), above (but excluding Grantor’s income tax returns and
similar financial records pertaining to Grantor);

(5)           All leases,
licenses, security agreements, and all other contracts and agreements governing
or relating to Grantor’s ownership, use, operation or sale of any of the
Mortgaged Property, to the extent not otherwise included; and

(6)           All payments under
insurance (whether or not Beneficiary is the loss payee thereof) or any
indemnity, warranty or guaranty, payable by reason of loss or damage to or
otherwise with respect to any of the foregoing, to the extent not otherwise
included; and

(7)           All replacements and
substitutes for, all products and proceeds of, and all accessions to, the
foregoing.

“Declarant Rights” means all rights of Grantor as Declarant
pursuant to any Condominium Declaration (as defined in Section 6.1).

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“Deed of Trust” means
this Deed of Trust, Security Agreement, Financing Statement and Assignment of
Rental, including all exhibits attached hereto, as the same may, at any time
and from time to time, be renewed, extended, modified and/or increased.

“Environmental Indemnity
Agreement” means the Environmental Indemnity Agreement of even date
herewith, executed by Grantor and Guarantors, for the benefit of Beneficiary,
as it may from time to time be amended, supplemented or restated.

“Event of Default” has
the meaning set forth in Section 3.1 hereof.

“Governmental Authority”
means any governmental authority, the United States of America, any state of
the United States of America, and any subdivision of any of the foregoing, and
any agency, department, commission, board, authority or instrumentality, bureau
or court having jurisdiction over the Mortgaged Property, or over Grantor or
any occupant or user of the Mortgaged Property, or any of their respective
businesses, operations, assets or properties.

“Grantor” has the meaning
assigned to it in the preamble hereof.

“Grantor’s Successors”
means each and all of the heirs, executors, administrators, legal
representatives, successors, and assigns of Grantor, both immediate and remote.

“Improvements” means the
Residential Condominium (as defined in the Loan Agreement) and the improvements
and amenities associated therewith and all buildings and improvements now or
hereafter situated on or in connection with the Land.

“Land” means all of that
certain tract of real property located in San Miguel County, Colorado, more
particularly described upon Exhibit A attached hereto, together
with all rights, privileges, tenements, hereditaments, rights-of-way,
easements, appendages, projections, and appurtenances thereto.

“Lease” means any ground
lease, space lease, sublease or other agreement (oral or written) under the
terms of which any person other than Grantor has or acquires any right to
occupy, use, or manage the Mortgaged Property, or any part thereof, or interest
therein.

“Lessee” means each
lessee, sublessee, tenant, guest or other Person having the right to occupy,
use, or manage the Mortgaged Property, or any part thereof, under a Lease.

“Loan” means the indebtedness
and obligations of Grantor evidenced by the Loan Documents.

“Loan Agreement” means
that certain Loan Agreement dated of even date herewith between Grantor and
Beneficiary, as it may, at any time and from time to time, be amended,
supplemented or restated.

“Loan Documents” means the Note, the Loan Agreement, the
Environmental Indemnity Agreement, and this Deed of Trust, together with all
loan agreements, security agreements, deeds of trust, collateral pledge
agreements, assignments, guaranties or contracts evidencing, or securing the
Secured Indebtedness, as they may, at any time and from time to time, be
amended, renewed, extended, increased, supplemented and/or restated.

“Mortgaged Property” means the Land, Improvements, Personal
Property and the Collateral, collectively.

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“Note” means that certain
promissory note dated of even date herewith, executed by Grantor and payable to
the order of Beneficiary, in the original principal amount of Thirty-One
Million Six Hundred Fifty Thousand and no/100 Dollars ($31,650,000.00), bearing
interest as therein specified, containing a clause requiring the payment of
reasonable attorneys’ fees, and providing that the principal balance of such
note shall be due and payable on October 1, 2009 (or October 1, 2010 if extended
as provided in the Loan Agreement) as it may, at any time and from time to
time, be renewed, extended, modified, increased, supplemented or restated.

“Permitted Exceptions”
means those items shown upon Exhibit B attached hereto.

“Personal Property” means
all fixtures and building materials and, to the extent, if any, owned by
Grantor, machinery, equipment, furniture, furnishings, inventory, and personal
property, and all renewals, replacements and substitutions therefor and
additions thereto, in which Grantor now has, or at any time hereafter acquires,
an interest, and which now, or at any time hereafter, are situated on the Land
or the Improvements.

“Real Estate” means the
Land, the Improvements, the Personal Property, the Leases, the Rental, the Declarant
Rights, and all other estates, easements, licenses, interests, rights, titles,
powers and privileges of every kind and character which Grantor now has or at
any time hereafter acquires, in and to the Land, the Improvements, the Personal
Property, and the proceeds of any and all insurance covering the Land, the
Improvements, the Leases, the Rental or the Personal Property.

“Rental” means all rents,
issues, profits, royalties, bonuses, revenue, receipts, income, accounts,
accounts receivable and other receivables, and other benefits derived from the
Mortgaged Property or arising from the use or enjoyment of any portion thereof
or from any Lease and including, without limitation, all revenues, receipts,
income, receivables and accounts relating to or arising from rentals and rent
equivalent income; all liquidated damages following defaults under any Lease;
all proceeds payable under any policy of insurance covering loss of rents,
issues, profits, royalties, bonuses, revenue, receipts, income, accounts, accounts
receivable and other receivables, and other benefits; and any and all rights
which Grantor may have against any Lessee or against any other Person under or
in connection with any Lease.

“Secured Indebtedness”
means:

(a)           All indebtedness, liabilities, indemnities and obligations
arising under the Note, the Loan Agreement, this Deed of Trust, and the other
Loan Documents;

(b)           All loans and advances which Beneficiary may hereafter
make to or for the benefit of Grantor in connection with the Loan or the
Mortgaged Property;

(c)           All other and additional indebtedness, liabilities and
obligations of every kind and character, of Grantor now or hereafter existing
in favor of Beneficiary in connection with the Loan or the Mortgaged Property,
regardless of whether they are direct, indirect, primary, secondary, joint,
several, joint and several, liquidated, unliquidated, fixed or contingent; and

(d)           Any and all renewals, increases, extensions,
modifications, rearrangements, or restatements of and supplements to all or any
part of the loans, advances, indebtednesses, liabilities, and obligations
described or referred to in subparagraphs (a) through (c) above, together with
all costs, expenses and reasonable attorneys’ fees incurred in connection with
the enforcement or collection thereof.

“Trustee” has the meaning
assigned to it in the preamble.

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Section 1.2.            All capitalized terms
not otherwise defined herein shall have the meaning assigned to them in the
Loan Agreement.

ARTICLE II

GRANT

Section 2.1.

(a)           For good and valuable consideration, including the
indebtedness evidenced by the Note, the Secured Indebtedness and the trust
hereinafter described, the receipt and legal sufficiency of which are hereby
expressly acknowledged by all parties, Grantor does hereby GRANT, BARGAIN,
SELL, TRANSFER, ASSIGN, AND CONVEY unto Trustee IN TRUST FOREVER, WITH POWER OF
SALE for the benefit and security of Beneficiary, the Mortgaged Property,
subject only to the Permitted Exceptions.

TO HAVE AND TO HOLD the Mortgaged Property, together
with all and singular the rights, hereditaments, and appurtenances in anywise
appertaining or belonging thereto, unto Trustee and Trustee’s successors or
substitutes in this trust, and Trustee’s and its or his successors and assigns,
in trust, and for the uses and purposes hereinafter set forth, forever.

(b)           This Deed of Trust shall also constitute a security
agreement with respect to, and Grantor hereby grants to Beneficiary a security
interest in, the Collateral.  This Deed
of Trust shall constitute a “fixture filing” for purposes of Chapter 9 of the
Code.  Portions of the Collateral are or
may become fixtures.  Information
concerning the security interests herein granted may be obtained at the
addresses stated in the introductory paragraph of this Deed of Trust.

(c)           To the extent that any of the Collateral is not subject to
the Uniform Commercial Code of the state or states where it is situated,
Grantor hereby assigns to Beneficiary all of Grantor’s right, title, and
interest in and to the Collateral to secure the Secured Indebtedness, together
with the right of set-off with regard to such Collateral (or any part
hereof).  Release of the lien of this
Deed of Trust shall automatically terminate this assignment.

Section 2.2.            Grantor,
for Grantor and Grantor’s Successors, hereby agrees to warrant and forever
defend, all and singular, title to the Mortgaged Property unto Trustee, and
Trustee’s successors or substitutes in this trust, forever, against every
person whomsoever lawfully claiming, or to claim, the same or any part thereof,
subject, however, to the Permitted Exceptions.

Section 2.3.            This
Deed of Trust, and all rights, remedies, powers, privileges, and benefits, and
all titles, interests, liens, and security interests created hereby, or arising
by virtue hereof, are given to secure payment and performance of the Secured
Indebtedness.

Section 2.4.            A carbon,
photographic, or other reproduction of this Deed of Trust, or any financing
statement relating to this Deed of Trust, shall be sufficient as a financing
statement.

ARTICLE III

RESPECTING DEFAULTS AND REMEDIES OF BENEFICIARY

Section 3.1.            The term “Event of
Default” shall mean the occurrence of an Event of Default, as such term is
defined in the Loan Agreement.

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Section 3.2.            Upon
the occurrence of an Event of Default, Beneficiary may, at Beneficiary’s
option, do any one or more of the following:

(a)           If Grantor has failed to keep or perform any covenant
whatsoever contained in this Deed of Trust or other Loan Documents, Beneficiary
may, but shall not be obligated to any person to, perform or attempt to perform
said covenant, and any payment made or expense incurred in the performance or
attempted performance of any such covenant shall be a part of the Secured
Indebtedness, and Grantor promises, upon demand, to pay to Beneficiary, at the
place where the Note is payable, or at such other place as Beneficiary may
direct by written notice, all sums so advanced or paid by Beneficiary, with
interest at the Default Rate (as defined in the Loan Agreement) from the date
when paid or incurred by Beneficiary.  No
such payment by Beneficiary shall constitute a waiver of any Event of
Default.  In addition to the liens and
security interests hereof, Beneficiary shall be subrogated to all rights,
titles, liens, and security interests securing the payment of any debt, claim,
tax, or assessment for the payment of which Beneficiary may make an advance, or
which Beneficiary may pay.

(b)           Beneficiary may, at its option, declare the Note and all
or any other portion of the remaining Secured Indebtedness to be immediately
due and payable without presentment, demand, protest, notice of protest and non-payment,
or other notice of default, notice of acceleration and intention to accelerate
or other notice of any kind, all of which are expressly waived by Grantor; provided,
however, that if any Event of Default specified in Article VII(e)
or (f) of the Loan Agreement shall occur, the Note and the remaining
Secured Indebtedness shall thereupon become due and payable concurrently therewith,
without any further action by Beneficiary and without presentment, demand,
protest, notice of protest and non-payment, or other notice of default,
notice of acceleration and intention to accelerate or other notice of any kind,
all of which are expressly waived by Grantor.

(c)           Beneficiary may foreclose this Deed of Trust, insofar as
it encumbers the Mortgaged Property, either by judicial action or through a
public trustee foreclosure sale through the Trustee.  If this Deed of Trust encumbers more than one
parcel of real estate, foreclosure may be by separate parcel or en masse, as
Beneficiary may elect in its sole discretion. 
Foreclosure through Trustee will be initiated by Beneficiary’s filing of
its notice of election and demand for sale with Trustee.  Upon the filing of such notice of election
and demand for sale, Trustee shall promptly comply with all notice and other
requirements of the laws of Colorado then in force with respect to such sales,
and shall give four weeks’ public notice of the time and place of such sale by
advertisement weekly five times in some newspaper of general circulation then
published in San Miguel County, Colorado. 
Any sale conducted by Trustee pursuant to this section shall be held at
the front door of the county courthouse for San Miguel County, Colorado, or on
the Mortgaged Property, or at such other place as similar sales are then
customarily held in San Miguel County, Colorado, provided that the actual place
of sale shall be specified in the notice of sale.  All fees, costs and expenses of any kind
incurred by Beneficiary in connection with foreclosure of this Deed of Trust,
including, without limitation, the costs of any appraisals and environmental
evaluations of the Mortgaged Property obtained by Beneficiary, all costs of any
receivership for the Mortgaged Property advanced by Beneficiary, and all
attorneys’, legal assistants’ and consultants’ fees incurred by Beneficiary,
shall constitute a part of the Secured Indebtedness and may be included as part
of the amount owing from Grantor to Beneficiary at any foreclosure sale.  The proceeds of any sale under this section
shall be applied first to the fees and expenses of the officer conducting the
sale, and then to the reduction or discharge of the Secured Indebtedness; any surplus
remaining shall be paid over to Grantor or to such other person or persons as
may be lawfully entitled to such surplus. 
At the conclusion of any foreclosure sale, the officer conducting the
sale shall execute and deliver to the purchaser at the sale a certificate of
purchase which shall describe the Mortgaged Property sold to such purchaser and
shall state that upon the expiration of the applicable periods for redemption,
the holder of such certificate will be entitled to a deed to the Mortgaged Property
described in the certificate.  After the
expiration of all applicable periods of redemption, unless the Mortgaged
Property sold has been redeemed by Grantor, the officer who conducted such sale
shall, upon request, execute and deliver an appropriate deed to 

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the holder of the certificate of purchase or the last
certificate of redemption, as the case may be. 
Nothing in this section dealing with foreclosure procedures or
specifying particular actions to be taken by Beneficiary or by Trustee or any similar
officer shall be deemed to contradict or add to the requirements and procedures
now or hereafter specified by Colorado law, and any such inconsistency shall be
resolved in favor of Colorado law applicable at the time of foreclosure.

(d)           Beneficiary shall be entitled, as a matter of absolute
right and without regard to the value of any security for the Secured
Indebtedness or the solvency of any person liable therefor, to the appointment
of a receiver for the Mortgaged Property upon ex-parte application to
any court of competent jurisdiction. 
Grantor waives any right to any hearing or notice of hearing prior to
the appointment of a receiver.  Such
receiver and his agents shall be empowered (a) to take possession of the
Mortgaged Property and any businesses conducted by Grantor or any other person
thereon and any business assets used in connection therewith and, if the
receiver deems it appropriate, to operate the same, (b) to exclude Grantor and
Grantor’s agents, servants, and employees from the Mortgaged Property, (c) to
collect the rents, issues, profits, and income therefrom, (d) to complete any
construction which may be in progress, (e) to do such maintenance and make such
repairs and alterations as the receiver deems necessary, (f) to use all stores
of materials, supplies, and maintenance equipment on the Mortgaged Property and
replace such items at the expense of the receivership estate, (g) to pay all
taxes and assessments against the Mortgaged Property and the Collateral, all
premiums for insurance thereon, all utility and other operating expenses, and
all sums due under any prior or subsequent encumbrance, and (h) generally to do
anything which Grantor could legally do if Grantor were in possession of the
Mortgaged Property.  All expenses incurred
by the receiver or his agents shall constitute a part of the Secured
Indebtedness.  Any revenues collected by
the receiver shall be applied first to the expenses of the receivership,
including attorneys’ fees incurred by the receiver and by Beneficiary, together
with interest thereon at the default rate, as set forth in the Note, from the
date incurred until repaid, and the balance shall be applied toward the Secured
Indebtedness or in such other manner as the court may direct.  Unless sooner terminated with the express
consent of Beneficiary, any such receivership will continue until the Secured
Indebtedness has been discharged in full, or until title to the Mortgaged
Property has passed after foreclosure sale and all applicable periods of
redemption have expired.

(e)           It is intended by each of the foregoing provisions of Subsection 3.2(c)
and Subsection 3.2(d) that Trustee may, after any request or
direction by Beneficiary, sell not only the Real Estate but also the Collateral
and other interests constituting a part of the Mortgaged Property, or any part
thereof, along with the Real Estate, or any part thereof, all as a unit and as
a part of a single sale, or may sell any part of the Mortgaged Property
separately from the remainder of the Mortgaged Property.  The sale or sales by Trustee of less than the
whole of the Mortgaged Property shall not exhaust the power of sale herein
granted, and Trustee is specifically empowered to make successive sale or sales
under such power until the whole of the Mortgaged Property shall be sold; and
if the proceeds of such sale or sales of less than the whole of such Mortgaged
Property shall be less than the aggregate of the Secured Indebtedness and the
expense of executing this trust, this Deed of Trust and the assignments, liens,
and security interests hereof shall remain in full force and effect as to the
unsold portion of the Mortgaged Property just as though no sale or sales of
less than the whole of the Mortgaged Property had occurred, but Beneficiary
shall have the right, at its sole election, to request Trustee to sell less
than the whole of the Mortgaged Property.

(f)            Grantor and Beneficiary agree that, in any assignments,
deeds, bills of sale, notices of sale, or postings, given by Trustee or
Beneficiary, any and all statements of fact or other recitals therein made as
to the identity of Beneficiary, or as to the occurrence or existence of any
Event of Default, or as to the acceleration of the maturity of the Secured
Indebtedness, or as to the request to sell, posting of notice of sale, notice
of sale, time, place, terms and manner of sale and receipt, distribution and
application of the money realized therefrom, or as to the due and proper
appointment of a substitute trustee and without being limited by the foregoing,
as to any other act or thing having been duly done by Beneficiary or by
Trustee, shall be taken by all courts of law and equity as prima  facie
evidence that the said statements or recitals state facts, 

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and Grantor does hereby ratify and confirm any and all
acts that Trustee may lawfully do in the premises by virtue hereof.

(g)           [Reserved.]

(h)           Beneficiary may, or Trustee may upon written request of
Beneficiary, proceed by suit or suits, at law or in equity, to enforce the
payment and performance of the Secured Indebtedness in accordance with the
terms hereof or of the Note or the other Loan Documents, to foreclose or
otherwise enforce the assignments, liens, and security interests created or
evidenced by the other Loan Documents, or this Deed of Trust as against all, or
any part of, the Mortgaged Property, and to have all or any part of the
Mortgaged Property sold under the judgment or decree of a court of competent
jurisdiction.

(i)            To the maximum extent permitted by law, Beneficiary, as a
matter of right without notice to Grantor and without regard to the sufficiency
of the security, and without any showing of insolvency, fraud, or mismanagement
on the part of Grantor, and without the necessity of filing any judicial or
other proceeding other than the proceeding for appointment of a receiver, shall
be entitled to the appointment of a receiver or receivers of the Mortgaged
Property, or any part thereof, and of the income, rents, issues, profits,
revenues, receipts, accounts, accounts receivable and other receivables
thereof.

(j)            To the maximum extent permitted by law, Beneficiary may
enter upon the Land, take possession of the Mortgaged Property and remove the
Collateral or any part thereof, with or without judicial process, and, in
connection therewith, without any responsibility or liability on the part of
Beneficiary, take possession of any property located on or in the Real Estate
which is not a part of the Mortgaged Property and hold or store such property
at Grantor’s expense.

(k)           Beneficiary may require Grantor to assemble the
Collateral, or any part thereof, and make it available to Beneficiary at a
place to be designated by Beneficiary which is reasonably convenient to Grantor
and Beneficiary.

(l)            After notification, if any, hereafter provided in this Subsection,
Beneficiary may, or the Trustee may, upon request of Beneficiary, sell, lease,
or otherwise dispose of, at the office of Beneficiary, or on the Land, or
elsewhere as chosen by Beneficiary, all or any part of the Collateral, in its
then condition, or following any commercially reasonable preparation or
processing, and each “Sale” (as used herein, the term “Sale”
means any such sale, lease, or other disposition made pursuant to this Subsection 3.2(l))
may be as a unit or in parcels, by public or private proceedings, and by way of
one or more contracts, and, at any Sale, it shall not be necessary to exhibit
the Collateral, or part thereof, being sold. 
The Sale of any part of the Collateral shall not exhaust Beneficiary’s
power of Sale, but Sales may be made, from time to time, until the Secured
Indebtedness is paid and performed in full. 
Reasonable notification of the time and place of any public Sale
pursuant to this Subsection, or reasonable notification of the time after which
any private Sale is to be made pursuant to this Subsection, shall be sent to
Grantor and to any other person entitled to notice under Chapter 9 of the
Code; provided, that if the Collateral being sold, or any part thereof, is
perishable, or threatens to decline speedily in value, or is of a type
customarily sold on a recognized market, Beneficiary may sell, lease, or
otherwise dispose of such Collateral without notification, advertisement or
other notice of any kind.  It is agreed
that notice sent or given not less than ten (10) calendar days prior to
the taking of the action to which the notice relates, is reasonable
notification and notice for the purposes of this Subsection.

(m)          Beneficiary may surrender the insurance policies maintained
pursuant to the terms hereof, or any part thereof, and receive and apply the
unearned premiums as a credit on the Secured Indebtedness, and, in connection
therewith, Grantor hereby appoints Beneficiary (or any officer of Beneficiary),
as the true and lawful agent and attorney-in-fact for Grantor (with
full powers of substitution), which power of attorney shall be deemed to be a
power coupled with an interest and therefore irrevocable, to collect such
premiums.

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(n)           Beneficiary may retain the Collateral in satisfaction of
the Secured Indebtedness whenever the circumstances are such that Beneficiary
is entitled to do so under the Code.

(o)           Beneficiary may buy the Mortgaged Property, or any part
thereof, at any public Sale or judicial Sale (including any Sale of the
Collateral as contemplated in Subsection 3.2(l) hereof).

(p)           Beneficiary may buy the Collateral, or any part thereof,
at any private Sale if the Collateral, or part thereof, being sold is a type
customarily sold in a recognized market or a type which is the subject of
widely distributed standard price quotations.

(q)           Beneficiary shall have and may exercise any and all other
rights and remedies which Beneficiary may have at law or in equity, or by
virtue of any other security instrument, or under the Code, or otherwise.

(r)            Notwithstanding anything contained herein to the
contrary, Beneficiary may proceed under Chapter 9 of the Code as to any or
all personal property covered hereby or, at Beneficiary’s election, Beneficiary
may proceed as to both the real and personal property covered hereby in
accordance with Beneficiary’s rights and remedies in respect of real property,
in which case the provisions of Chapter 9 of the Code (and Subsection 3.2(l)
hereof) shall not apply.

Section 3.3.            If
Beneficiary is the purchaser of the Mortgaged Property, or any part thereof, at
any sale thereof (including any Sale of the Collateral as contemplated in Subsection 3.2(l)
hereof), whether such sale be under the power of sale hereinabove vested in
Trustee, or upon any other foreclosure or enforcement of the assignments,
liens, and security interests hereof, or otherwise, Beneficiary shall, upon any
such purchase, acquire good title to the Mortgaged Property so purchased, free of
the assignments, liens, and security interests of these presents.

Section 3.4.            Should
any part of the Mortgaged Property come into the possession of Beneficiary,
whether before or after the occurrence of an Event of Default, Beneficiary may
use or operate the Mortgaged Property for the purpose of preserving it or its
value, pursuant to the order of a court of appropriate jurisdiction, or in
accordance with any other rights held by Beneficiary with respect to the
Mortgaged Property.  Grantor covenants to
promptly reimburse and pay to Beneficiary, at the place where the Note is
payable, or at such other place as may be designated by Beneficiary in writing,
the amount of all reasonable expenses (including the cost of any insurance,
taxes, or other charges) incurred by Beneficiary in connection with its
custody, preservation, use or operation of the Mortgaged Property, together
with interest thereon from the date incurred by Beneficiary at the Default Rate
(as defined in the Loan Agreement), and all such expenses, cost, taxes,
interest, and other charges shall be a part of the Secured Indebtedness.  It is agreed, however, that the risk of
accidental loss or damage to the Mortgaged Property is undertaken by Grantor,
and Beneficiary shall have no liability whatever for decline in value of the
Mortgaged Property, nor for failure to obtain or maintain insurance, nor for
failure to determine whether any insurance ever in force is adequate as to
amount or as to the risks insured.

Section 3.5.            If
the assignments, liens, or security interests hereof shall be foreclosed or
otherwise enforced by a Trustee’s sale, or by any other judicial or non-judicial
action, then the purchaser at any such sale shall receive, as an incident to
his ownership, immediate possession of that portion of the Mortgaged Property
purchased, and if Grantor or Grantor’s Successors shall hold possession of any
of said portion of the Mortgaged Property subsequent to such foreclosure,
Grantor and Grantor’s Successors shall be considered as tenants at sufferance
of the purchaser at such foreclosure sale, and anyone occupying the Mortgaged
Property (or any part thereof) after demand made for possession thereof shall
be guilty of forcible detainer and shall be 

 10
 

 

 

subject to eviction and removal, forcible or otherwise,
with or without (to the maximum extent permitted by law) process of law, and
all damages by reason thereof are hereby expressly waived.

Section 3.6.            The
proceeds from any sale, lease or other disposition made pursuant to this Article III,
or the proceeds from surrendering any insurance policies pursuant to Subsection 3.2(m)
hereof, or any Rental collected by Beneficiary pursuant to Article IV
hereof, shall be applied by Trustee, or by Beneficiary, as the case may be, as
follows:  FIRST, to the Secured
Indebtedness, in the order and manner described in Section 2.04 of the Loan
Agreement, and SECOND, the balance, if any, remaining after the full and final
payment and performance of the Secured Indebtedness, to Grantor, or as
otherwise required by applicable law.

Section 3.7.            This
instrument shall be effective as a mortgage as well as a deed of trust, and
upon the occurrence of an Event of Default may be foreclosed as to the
Mortgaged Property in any manner permitted by the laws of the State in which
the Land is located and any other state in which any part of the Mortgaged
Property is situated.  Any foreclosure
suit may be brought by Trustee or Beneficiary. 
If a foreclosure hereunder is commenced by Trustee, Beneficiary may, at
any time before the sale, direct the Trustee to abandon the sale, and may then
institute suit for the collection of the Note, and for the foreclosure or
enforcement of the assignments, liens, and security interests hereof.  If Beneficiary should institute a suit for
the collection of the Note, and for a foreclosure or enforcement of the
assignments, liens, and security interests hereof, it may, at any time before
the entry of a final judgment in said suit, dismiss the same, and require
Trustee to sell the Mortgaged Property, or any part thereof, in accordance with
the provisions of this Deed of Trust.

Section 3.8.            (a) 
In the event an interest in any of the Mortgaged Property is foreclosed
upon pursuant to a judicial or nonjudicial foreclosure sale, Grantor agrees as
follows that notwithstanding the provisions of Sections 51.003, 51.004, and
51.005 of the Texas Property Code (as the same may be amended from time to
time), and to the extent permitted by law, Grantor agrees that Beneficiary
shall be entitled to seek a deficiency judgment from Grantor and any other
party obligated on the Secured Indebtedness equal to the difference between the
amount owing on the Secured Indebtedness and the amount for which the Mortgaged
Property was sold pursuant to judicial or nonjudicial foreclosure sale.  Grantor expressly waives any right of offset
to which Grantor might be entitled pursuant to those statutes.  Grantor recognizes that this section
constitutes a waiver of the above-cited provisions of the Texas Property
Code which would otherwise permit Grantor and other persons against whom
recovery of deficiencies is sought or any guarantor independently (even absent
the initiation of deficiency proceedings against them) to present competent
evidence of the fair market value of the Mortgaged Property as of the date of
the foreclosure sale and offset against any deficiency the amount by which the
foreclosure sale price is determined to be less than such fair market
value.  Grantor further recognizes and
agrees that this waiver creates an irrebuttable presumption that the
foreclosure sale price is equal to the fair market value of the Mortgaged
Property for purposes of calculating deficiencies owed by Grantor, any
Guarantor, and others against whom recovery of a deficiency is sought.

(b)           Alternatively, in the event the
waiver provided for in subsection (a) above is determined by a court of
competent jurisdiction to be unenforceable, the following shall be the basis
for the finder of fact’s determination of the fair market value of the
Mortgaged Property as of the date of the foreclosure sale in proceedings
governed by Sections 51.003, 51.004 and 51.005 of the Texas Property Code (as
amended from time to time):  (i) the
Mortgaged Property shall be valued in an “as is” condition as of the date of
the foreclosure sale, without any assumption or expectation that the Mortgaged
Property will be repaired or improved in any manner before a resale of the
Mortgaged Property after foreclosure; (ii) the valuation shall be based upon an
assumption that the foreclosure purchaser desires a resale of the Mortgaged
Property for cash promptly (but no later than twelve (12) months) following the
foreclosure sale; (iii) all reasonable closing costs customarily borne by the
seller in commercial real estate transactions should be deducted from the gross
fair market value of the Mortgaged Property, including, 

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without limitation, brokerage commissions,
title insurance, a survey of the Mortgaged Property, tax prorations, attorneys’
fees, and marketing costs; (iv) the gross fair market value of the Mortgaged
Property shall be further discounted to account for any estimated holding costs
associated with maintaining the Mortgaged Property pending sale, including,
without limitation, utilities expenses, property management fees, taxes and
assessments (to the extent not accounted for in (iii) above), and other
maintenance, operational and ownership expenses; and (v) any expert opinion
testimony given or considered in connection with a determination of the fair
market value of the Mortgaged Property must be given by persons having at least
five (5) years experience in appraising property similar to the Mortgaged
Property and who have conducted and prepared a complete written appraisal of
the Mortgaged Property taking into consideration the factors set forth above.

ARTICLE IV

LEASES AND ASSIGNMENT OF RENTAL

Section 4.1.            Grantor
hereby absolutely assigns to Beneficiary all Rental payable under each Lease
now or at any time hereafter existing, such assignment being upon the following
terms:

(a)           until Beneficiary notifies Grantor of an Event of Default,
Grantor shall collect Rental directly from each Lessee, and each Lessee shall
pay Rental directly to Grantor, but Grantor covenants to hold the Rentals in
trust, to be applied, and Grantor covenants to apply the Rentals, to the
payment of (i) the Note and the remaining Secured Indebtedness, and
(ii) reasonable and necessary expenses and charges with respect to the
ownership, maintenance and operation of the Mortgaged Property, all before the Rentals
are applied by Grantor for any other purpose not inconsistent with the Loan
Agreement;

(b)           upon receipt by Grantor from Beneficiary of notice of the
occurrence of an Event of Default and that Rental shall be paid directly to
Beneficiary, Grantor is hereby directed to pay directly to Beneficiary all
Rental thereafter accruing received by Grantor;

(c)           upon receipt by Grantor, the manager of the Mortgaged
Property and/or any Lessee from Beneficiary of notice of the occurrence of an
Event of Default and that Rental shall be paid directly to Beneficiary,
Grantor, such manager and each Lessee that receives notice of the occurrence of
an Event of Default are hereby authorized and directed by Grantor to pay
directly to Beneficiary all Rental thereafter accruing, and the receipt of
Rental by Beneficiary shall be a release of each such manager or Lessee to the
extent of all amounts so paid to Beneficiary;

(d)           Rental so received by Beneficiary shall be applied by
Beneficiary, at its option, in any order determined by Beneficiary in its sole
and unreviewable discretion, notwithstanding any instructions, directions or
requests from Grantor, manager or any Lessee to the contrary, to (i) the
payment and performance of the Secured Indebtedness and/or (ii) reasonable
expenses of and charges with respect to the ownership, maintenance and
operation of the Mortgaged Property (and including, at Beneficiary’s option,
the maintenance, without interest thereon, of a reasonable reserve for
replacement); and

(e)           Beneficiary shall not be liable for Beneficiary’s failure
to collect, or its failure to exercise diligence in the collection of, Rental,
but shall be accountable only for Rental that it shall actually receive.

This assignment is in addition
and in supplement to, and Beneficiary’s rights and remedies under this Article IV
are cumulative of, Beneficiary’s rights and remedies under any other document
or assignment concerning or applicable to each Lease now or at any time
hereafter existing or Rentals thereunder, or any part thereof.

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As between Beneficiary and
Grantor, and any person claiming through or under Grantor, the assignment
contained in this Section 4.1 is intended to be absolute,
unconditional and presently effective, and the provisions of Subsection 4.1(c)
are intended solely for the benefit of the manager of the Mortgaged Property
and each Lessee and shall never inure to the benefit of Grantor or any person
claiming by, through or under Grantor, other than a manager or a Lessee who has
not received such notice.  It shall not
be necessary for Beneficiary to institute legal proceedings of any kind
whatsoever to enforce the provisions of this Section 4.1.

Section 4.2.            Nothing
in this Article IV shall be construed as subordinating this Deed of
Trust to any Lease.

Section 4.3.            In
the event that Beneficiary ever collects Rental, Beneficiary shall be entitled
to pay its agent as compensation for collecting such Rental, from sums so
collected, a reasonable fee.

Section 4.4.            Grantor consents to
Beneficiary’s application of Rentals as provided in Section 4.1.(d), and
Grantor acknowledges and agrees that it is in Grantor’s best interest and for
Grantor’s benefit for Beneficiary to apply the Rentals as provided in Section
4.1.(d).  Grantor shall not challenge
or interfere with Beneficiary’s application of Rentals as provided in Section 4.1.(d).

Section 4.5.

(a)           Notwithstanding any provision in this Deed of Trust to the
contrary, upon full payment and satisfaction of the Secured Indebtedness, this
assignment of Rental shall terminate. 
Written demand made by Beneficiary delivered to any Lessee for payment
of Rentals by reason of the occurrence of any Event of Default claimed by
Beneficiary shall be sufficient evidence of each such Lessee’s obligation and
authority to make all future payments of Rentals to Beneficiary without the
necessity for further consent by the Grantor. 
Grantor hereby indemnifies and agrees to hold each Lessee free and
harmless from and against all liability, loss, cost, damage or expense suffered
or incurred by such Lessee by reason of its compliance with any demand for
payment of Rentals made by the Beneficiary contemplated by the preceding
sentence.

(b)           If Beneficiary receives any Rentals as provided in this Article
IV, then the provisions of Section 5.19. shall apply to the Rentals
received by Beneficiary.

ARTICLE V

MISCELLANEOUS

Section 5.1.            If
the Secured Indebtedness is paid in full and all obligations of Grantor under
the Loan Documents are performed in full, then this conveyance shall become
null and void and shall be released at Grantor’s request and expense;
otherwise, it shall remain in full force and effect.

Section 5.2.            As
used in this Article V, “Rights” means rights, remedies,
powers and privileges, and “Liens” means all assignments, titles,
interests, liens, security interests, and other encumbrances.  All Rights and Liens herein expressly
conferred are cumulative of all other Rights and Liens herein, or by law or in
equity provided, or provided in any other security instrument, and shall not be
deemed to deprive Beneficiary or Trustee of any such other legal or equitable
Rights and Liens by judicial proceedings, or otherwise, appropriate to enforce
the conditions, covenants and terms of this Deed of Trust, the Note and the
other Loan Documents, and the employment of any Rights hereunder, or otherwise,
shall not prevent the concurrent or subsequent employment of any other
appropriate Rights.

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Section 5.3.            Any
and all covenants in this Deed of Trust may from time to time, by instrument in
writing signed by Beneficiary and delivered to Grantor, be waived to such
extent and in such manner as Beneficiary may desire, but no such waiver shall
ever affect or impair Beneficiary’s Rights or Liens hereunder, except to the
extent so specifically stated in such written instrument.  Impossibility shall not excuse the
performance of any covenant or condition in this Deed of Trust.

Section 5.4.            Without
waiving any right of Beneficiary arising out of a breach by Grantor of Grantor’s
obligations and covenants under the Loan Documents, if Grantor, or any of
Grantor’s Successors, conveys its interest in any of the Mortgaged Property to
any other party, then Beneficiary may, without notice to Grantor, or its
successors and assigns, deal with any owner of any part of the Mortgaged
Property with reference to this Deed of Trust and the Secured Indebtedness,
either by way of forbearance on the part of Beneficiary, or extension of time
of payment of the Secured Indebtedness, or release of all or any part of the
Mortgaged Property, or any other property securing payment of the Secured
Indebtedness, without in any way modifying or affecting Beneficiary’s Rights
and Liens hereunder or the liability of Grantor, or any other party liable for
payment of the Secured Indebtedness, in whole or in part.

Section 5.5.            Grantor
hereby waives all Rights of marshaling in the event of any foreclosure of the
Liens hereby created.

Section 5.6.            It
is understood and agreed that the proceeds of the Note, to the extent that the
same are utilized to pay or renew or extend any indebtedness of Grantor, or any
other indebtedness, or take up or release any outstanding Liens against the
Mortgaged Property, or any portion thereof, have been advanced by Beneficiary
at Grantor’s request and at the request of the obligors thereof and upon their
representation that such amounts are due and payable.  Beneficiary shall be subrogated to any and
all Rights and Liens owned or claimed by any owner or Beneficiary of said
outstanding Rights and Liens, however remote, regardless of whether said Rights
and Liens are acquired by assignment or are released by the Beneficiary thereof
upon payment.

Section 5.7.            Each
and every party who signs this Deed of Trust, and each and every subsequent
owner of any of the Mortgaged Property, covenants and agrees that such party
will perform or cause to be performed, each and every condition, term,
provision, and covenant of this Deed of Trust, except that such party shall
have no duty to pay the indebtedness evidenced by the Note except in accordance
with the terms of the Note, and the terms of this Deed of Trust or in
accordance with the terms of the transfer to him.

Section 5.8.            If
any provision of this Deed of Trust is held to be illegal, invalid, or
unenforceable under present or future laws effective during the term of this
Deed of Trust, the legality, validity, and enforceability of the remaining
provisions of this Deed of Trust shall not be affected thereby, and in lieu of
each such illegal, invalid or unenforceable provision there shall be added
automatically as a part of this Deed of Trust a provision as similar in terms
to such illegal, invalid, or unenforceable provision as may be possible and be
legal, valid, and enforceable.  If the
Rights and Liens created by this Deed of Trust shall be invalid or
unenforceable as to any part of the Secured Indebtedness, then the unsecured
portion of the Secured Indebtedness shall be completely paid prior to the
payment of the remaining and secured portion of the Secured Indebtedness, and
all payments made on the Secured Indebtedness shall be considered to have been
paid on and applied first to the complete payment of the unsecured portion of
the Secured Indebtedness.

Section 5.9.            This
Deed of Trust is binding upon Grantor and Grantor’s Successors, and shall inure
to the benefit of Beneficiary, and its successors and assigns, and the
provisions hereof shall likewise be covenants running with the land.  The duties, covenants, conditions,
obligations, and warranties of Grantor in this Deed of Trust shall be joint and
several obligations of Grantor and Grantor’s Successors.  Beneficiary may at any time and from
time to time assign or sell to other lenders all or a portion of the
indebtedness secured 

 14
 

 

 

hereby,
or sell participations therein, and may, in contemplation of such sale or
assignment divulge, and deliver copies of, information (financial or otherwise)
concerning Grantor, any Guarantor and the Mortgaged Property to prospective
lenders.

Section 5.10.          This
Deed of Trust may be executed in a number of identical counterparts, each of
which, for all purposes, shall be deemed an original.

Section 5.11.          Beneficiary
shall have the right at any time to file this Deed of Trust as a financing
statement, but the failure to do so shall not impair the validity and
enforceability of this Deed of Trust in any respect whatsoever.  Grantor grants to Beneficiary the right to
file any financing statement, continuation or amendment deemed appropriate by
Beneficiary, without signature by Grantor and without notice, in connection
with the security interests granted herein or in any other Security Instrument.

Section 5.12.          Grantor
hereby assumes all liability for the Mortgaged Property, for the Liens created
therein by this Deed of Trust, and for any development, use, possession,
maintenance, and management of, and construction upon, the Mortgaged Property,
or any part thereof, and agrees to assume liability for, and to indemnify and
hold Beneficiary harmless from and against, any and all claims, causes of
action, or liabilities, for injuries to or deaths of persons and damage to
property, howsoever arising, from or incident to such development, use,
possession, maintenance, management, and construction, whether such persons be
agents or employees of Grantor or of third parties, or such damage be to
property of Grantor or of others save and except for such damage or injury as
is the result of Beneficiary’s gross negligence or willful misconduct.  Grantor agrees to indemnify, save and hold
harmless Beneficiary from and against, and covenants to defend Beneficiary
against, any and all losses, damages, claims, costs, penalties, liabilities,
and expenses, including, but not limited to, court costs and reasonable
attorneys’ fees, howsoever arising or incurred because of, incident to, or with
respect to the Mortgaged Property or any development, use, possession,
maintenance, or management thereof or construction thereon.

Section 5.13.          If
all or any portion of the proceeds of the loan evidenced by the Note has been
advanced for the purpose of paying the purchase price for all or a part of the
Mortgaged Property, then Beneficiary shall have, and is hereby granted, a
vendor’s lien on the Mortgaged Property to further secure the Secured
Indebtedness, and Beneficiary shall be subrogated to all rights, titles,
interests, liens, and security interests owned or claimed by the holder of any
indebtedness which has been directly or indirectly discharged or paid from the
proceeds of the loan evidenced by the Note.

Section 5.14.          All
references to “Article,” “Articles,” “Section,” “Sections,”
“Subsection,” or “Subsections” contained herein are, unless
specifically indicated otherwise, references to articles, sections, and
subsections of this Deed of Trust.

Section 5.15.          Whenever
herein the singular number is used, the same shall include the plural where
appropriate, and words of any gender shall include each other gender where
appropriate.

Section 5.16.          The
captions, headings, and arrangements used in this Deed of Trust are for
convenience only and do not in any way affect, limit, amplify, or modify the
terms and provisions hereof.

Section 5.17.          Whenever this Deed of Trust requires
or permits any consent, approval, notice, request, or demand from one party to
another, the consent, approval, notice, request, or demand must be in writing
to be effective and shall be deemed to have been given when given in accordance
with the provisions of Section 9.01 of the Loan Agreement; provided that any
notice of foreclosure shall be effective when given in accordance with
statutory requirements notwithstanding anything to the contrary contained
herein or in Section 9.01 of the Loan Agreement.

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Notwithstanding any provision
contained herein or in any of the other Loan Documents to the contrary, in the
event that Beneficiary shall fail to give any notice to Grantor required
hereunder or thereunder, the sole and exclusive remedy for such failure shall
be to seek appropriate equitable relief to enforce the Loan Documents to give
such notice and to have any action of Beneficiary postponed or revoked and any
proceedings in connection therewith delayed or terminated pending the giving of
such notice by Beneficiary, and no Person shall have any right to damages
(whether actual or consequential) or any other type of relief not herein
specifically set out against Beneficiary, all of which damages or other relief
are expressly waived by Grantor.  The
foregoing is not intended and shall not be deemed under any circumstances to
require Beneficiary to give notice of any type or nature to any Person except
as expressly set forth herein or as may be otherwise expressly required by
applicable law regarding statutory notice of non-judicial foreclosure
sales of certain collateral.

Section 5.18.          The
substantive laws of the State of Colorado shall govern the creation, perfection
and enforcement of the liens, rights and obligations created and intended to be
created in this Deed of Trust.  All other
aspects of this Deed of Trust and of the loan transaction evidenced by the Note
and the other Loan Documents are intended to be governed by the laws of the
State of Texas, as specified therein, unless federal law requires the
application of federal law.

Section 5.19.          No
provision herein or in any promissory note, instrument, or any other Security
Instrument evidencing or securing the Secured Indebtedness shall require the
payment or permit the collection of interest in excess of the maximum permitted
by law.  If any excess of interest in
such respect is provided for herein or in any other Security Instrument, the
provisions of this paragraph shall govern, and neither Grantor nor any borrower
shall be obligated to pay the amount of such interest to the extent that it is
in excess of the amount permitted by law. 
The intention of the parties being to conform strictly to the usury laws
now in force, all promissory notes, instruments, and other Loan Documents
evidencing or securing the Secured Indebtedness shall be held subject to
reduction to the amount allowed under said usury laws as now or hereafter construed
by the courts having jurisdiction.

Section 5.20.          Except to the extent
venue necessarily lies in San Miguel County, Colorado to foreclose or otherwise
enforce the provisions of the Deed of Trust, any suit, action or proceeding
against Grantor with respect to this Deed of Trust or the other Loan Documents
or any judgment entered by any court in respect thereof, may be brought in the
courts of the State of Texas, or in the United States Courts located in Dallas
County, Texas, as Beneficiary in its sole discretion may elect and Grantor
hereby submits to the non-exclusive jurisdiction of such courts for the purpose
of any such suit, action or proceeding. 
Grantor hereby irrevocably consents to the service of process in any
suit, action or proceeding in said court by the mailing thereof by Beneficiary
by registered or certified mail, postage prepaid, to Grantor’s address set
forth in the first paragraph of this Deed of Trust.  Grantor hereby irrevocably waives any
objections which it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Deed of Trust or
any other Security Instrument brought in the courts located in the State of
Texas, and hereby further irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an
inconvenient forum.  GRANTOR AND
BENEFICIARY HEREBY WAIVE TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING
BROUGHT IN CONNECTION WITH THIS DEED OF TRUST OR ANY OF THE OTHER LOAN DOCUMENTS,
WHICH WAIVER IS INFORMED AND VOLUNTARY.

Section 5.21.          Time
is of the essence of this Deed of Trust and the other Loan Documents.

Section 5.22.          Nothing
contained in this Deed of Trust, the Note, or any of the other Loan Documents
nor the acts of the parties hereto shall be construed to create a relationship
of principal and agent, partnership, or joint venture between Grantor and
Beneficiary.

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Section 5.23.          Beneficiary may,
from time to time, in Beneficiary’s sole discretion, contract for and procure
an Appraisal of the Mortgaged Property. 
Grantor covenants and agrees to pay the cost of each such Appraisal
within ten (10) days of written notice from Beneficiary specifying the amount
due.  All amounts due hereunder shall
constitute part of the Secured Indebtedness. 
Notwithstanding the foregoing, so long as no Event of Default has
occurred, Grantor shall not be required to pay for more than one Appraisal per
calendar year.

Section 5.24.  It is agreed and understood that
Grantor shall provide to Beneficiary, on or before January 31st of
each year during the term of the Note secured hereby, written evidence that all
ad valorem taxes and other assessments against the property have been paid in
full.

Section 5.25.  Reference
is made to Article VII(k) of the Loan Agreement for a statement of a
prohibition against sale, conveyance, transfer, mortgage or encumbrance of the
Mortgaged Property or any interest therein, which terms and provisions are
incorporated herein by reference.

Section 5.26.          Reference is made to Section 8.08
Application of Insurance Proceeds and Section 8.09 Application of
Condemnation Proceeds of the Loan Agreement for a statement of Grantor’s
and Beneficiary’s rights in and to proceeds of insurance policies in respect of
the Mortgaged Property or any part thereof and of condemnation proceeds with
respect to the Mortgaged Property, any portion thereof and any interest
therein, which terms and provisions are incorporated herein by reference.

Section 5.27.          The Loan Documents
embody the entire agreement between the parties and supersede all prior
agreements and understandings.  No
provision of this Deed of Trust may be modified, waived or terminated except by
an instrument in writing executed by the party against whom a modification,
waiver or termination is sought to be enforced.

Section 5.28.          Beneficiary has not
consented to any priority of a contractor’s lien for construction of any
improvements to the Mortgaged Property, and any such lien hereafter arising
shall be subordinate and inferior to the lien of this instrument.

Section 5.29.          Any obligation
or liability of  Grantor hereunder shall be enforceable only against, and
payable only out of, the property of Grantor, and in no event shall any
officer, director, shareholder, partner, beneficiary, agent, advisor or
employee of Grantor, be held to any personal liability whatsoever or be liable
for any of the obligations of Grantor hereunder, or the property of any such
Persons be subject to the payment of any such obligations, except in the case of
certain Persons as otherwise specifically provided in the Loan Documents and
where such Persons have executed a written agreement pertaining thereto.

ARTICLE VI

PARTIAL RELEASE

Section 6.1.            Definitions.           As used in this Article VI,
the following terms shall have the meanings assigned to them as follows:

“Condominium Declaration”
means any residential condominium declaration affecting the Property, filed by
Grantor or Declarant, to which Beneficiary has subordinated the lien of this
Deed of Trust.

“Net Sale Proceeds” means
the difference between (i) the gross sales price of a Unit and (ii) ordinary
and actual closing costs incurred by Grantor, as seller of the Unit to be
released, which costs shall not exceed the normal costs associated with such
sales in the area in which the Unit is located.

 17
 

 

 

“Permitted Sale” means
for which the gross sales price is equal to or greater than the price
contemplated in the Price Schedule attached to the Loan Agreement as Exhibit
J.

“Release Price” means for
any Unit the amount equal to ninety percent (90%) of the Net Sale Proceeds.

“Unit” means each
residential condominium unit under the Condominium Declaration.

Section 6.2.            Release
Conditions.  Notwithstanding anything
to the contrary contained in this Deed of Trust, or any of the other Loan
Documents, so long as (i) no Event of Default or Potential Default has occurred
and is continuing and (ii) after the release of a Unit, the aggregate Appraised
Value of all Units remaining subject to the lien of this Deed of Trust would be
not less than the quotient of (x) the outstanding principal balance of the
Secured Indebtedness immediately following Lender’s receipt and application of
the Release Price for said Unit divided by
(y) seventy-five percent (75%), then Borrower shall, upon a Permitted Sale of a
Unit, be entitled to obtain a partial release of said Unit from the lien of
this Deed of Trust upon satisfaction of the following terms and conditions:

(a)           Grantor shall pay to Beneficiary, in cash, the Release
Price for the Unit and a release fee of $50.00. 
The Release Price shall be applied by Beneficiary as a prepayment of the
Secured Indebtedness.

(b)           Grantor shall deliver to Beneficiary a partial release of
lien in form and content satisfactory to Beneficiary.

(c)           Grantor shall pay all expenses of Beneficiary arising in
connection with the release of such Unit including, without limitation, all
reasonable attorneys’ fees incurred by Beneficiary and the expense, if any, to
Beneficiary of inspecting the Unit prior to release.

REMAINDER
OF PAGE INTENTIONALLY BLANK.

SIGNATURE PAGE(S) FOLLOWS.

 18
 

 

 

EXECUTED to be effective as of
the day and date first above written.

	
   

  	
  GRANTOR:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD MOUNTAIN VILLAGE, LLC,

  
	
   

  	
  a Colorado limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Behringer Harvard Short-Term Opportunity Fund I LP,

  
	
   

  	
   

  	
  a Texas limited
  partnership,

  
	
   

  	
   

  	
  its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Behringer Harvard Advisors II LP.

  
	
   

  	
   

  	
   

  	
  a Texas limited
  partnership,

  
	
   

  	
   

  	
   

  	
  its general
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Harvard Property Trust, LLC,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware
  limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
  its general
  partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
								

 

	
  STATE OF TEXAS

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF

  	
   

  	
   

  	
  §

  
				

 

This instrument was acknowledged
before me on this             
day of September, 2006, by Gerald J. Reihsen, III, Secretary of Harvard
Property Trust, LLC, a Delaware limited liability company, as general partner
on behalf of Behringer Harvard Advisors II LP, a Texas limited partnership, as
general partner on behalf of Behringer Harvard Short-Term Opportunity Fund I
LP, a Texas limited partnership, as manager on behalf of Behringer
Harvard Mountain Village LLC, a
Colorado limited liability company,
on behalf of said limited liability company.

 

	
  

  	
   

  
	
   

  	
  Notary Public in
  and for the State of Texas

  
	
   

  
	
  (SEAL)

  

 

 

	
  Exhibit A

  	
  -

  	
  Legal Description

  
	
  Exhibit B

  	
  -

  	
  Permitted Exceptions

  

 

 19

 

 

 

EXHIBIT A

Legal Description 

LOTS SS165-A and SS165-B, Town of Mountain Village,
Colorado, according to the plat filed in the office of the Clerk and Recorder
in Plat Book 1 at Page 2281, and according to the Town of Mountain Village
Official Lot List, recorded in Book 586 at page 548;

TOGETHER WITH the Road Access Easement Agreement,
recorded May 17, 2006 at Reception No. 384207; Subject to the terms,
conditions, provisions and obligations contained therein;

LESS AND EXCEPT all rights to minerals and oil, gas
or other hydrocarbons located on, in or under the subject property, without any
right of surface entry for exploration, development or extraction, as reserved
to The Telluride Company in Deed recorded in Book 494 at page 22 and in Book
515 at page 626;

County of San Miguel, Colorado.

 

 

EXHIBIT B

Permitted Exceptions

Those exceptions to title contained in the Loan Policy of Title
Insurance issued to Mortgagee by Stewart Title Guaranty Company, insuring the
lien of this Deed of Trust.Exhibit
10.1

WAIVER
AND TENTH AMENDMENT TO

AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT

This WAIVER AND
TENTH AMENDMENT TO AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT dated as of
October 12, 2006 (this “Amendment”) is
entered into among SIRVA RELOCATION
CREDIT, LLC, as Seller, SIRVA RELOCATION LLC (“SIRVA Relo”)
and EXECUTIVE RELOCATION CORPORATION (“Executive Relo”),
as Servicers and Originators, the Purchasers party thereto and
LASALLE BANK NATIONAL ASSOCIATION, as Agent (in such capacity, the “Agent”).

RECITALS

A.            The Seller, the Servicers, the
Purchasers and the Agent are parties to that certain Amended and Restated
Receivables Sale Agreement dated as of December 23, 2004 and amended as of
March 31, 2005, May 31, 2005, June 30, 2005, September 30, 2005, November 14,
2005, December 9, 2005, March 27, 2006, August 15, 2006 and August 16, 2006 (as
so amended, the “Receivables Sale Agreement”).

B.            The parties wish to amend the
Receivables Sale Agreement as hereinafter set forth.

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

1.             Certain Defined Terms.
Capitalized terms which are used herein without definition and that are defined
in the Receivables Sale Agreement shall have the same meanings herein as in the
Receivables Sale Agreement, as amended by this Amendment.

2.             Amendments to Receivables Sale
Agreement.

(a)           The Receivables Sale Agreement is
hereby amended so that the definition of “Reserve” in Schedule I thereto is
amended to read in its entirety as follows:

““Reserve” means
the sum of the Purchaser Reserves.”

(b)           The Receivables Sale Agreement is
hereby amended by adding the following new definition to Schedule I
thereto, in the applicable alphabetical position:

““Tenth Amendment”
means the Waiver and Tenth Amendment to Amended and Restated Receivables Sale
Agreement, dated as of October 12, 2006, among the Seller, the Servicers, the
Originators, the Agent and the Purchasers.”

3.             Limited Consents and Waivers.
Section 5.1(a)(i)(A), (B), (C) and (D) of the Receivables Sale Agreement, as
amended by Section 3(a) of the Third Amendment and Section 3(a) of the Fourth
Amendment, Section 3(a) of the Fifth Amendment, Section 4(a) of the Seventh
Amendment and Section 3(a) of the Eighth Amendment, require delivery of
unqualified audited consolidated financial statements of SIRVA, Inc. and the
Parent for each fiscal year and delivery of unaudited consolidated quarterly
financial statements for SIRVA, Inc. and the Parent, in each case by specified
dates. Subject to Section 4 of this Amendment and subject to the
representation 

 

and warranty in Section
5(iv) of this Amendment being true and correct, the Agent and the
Purchasers agree that:

(a)           the delivery of such financial
statements for the fiscal year ended December 31, 2005 may be delayed until
January 31, 2007; and the delivery of such financial statements for the fiscal
year ended December 31, 2006 may be delayed until June 30, 2007; and

(b)           the delivery of the unaudited
consolidated quarterly financial statements of SIRVA, Inc. and the Parent to be
delivered under clauses (B) and (D) of Section 5.1(a)(i) of the Receivables
Sale Agreement in respect of each fiscal quarter described below may be delayed
until the date set opposite such quarter:

	
  Fiscal Quarter

  	
  Delivery Date

  
	
   

  	
   

  
	
  first and second quarter, 2006

  	
  December 31, 2006

  
	
   

  	
   

  
	
  third quarter, 2006

  	
  January 31, 2007.

  

 

4.             Reservation of Rights. By
press releases dated January 31, 2005, March 15, 2005, June 20, 2005,
June 22, 2005 and September 21, 2005, SIRVA, Inc. announced various matters,
including the existence of a formal investigation by the SEC of such
practices and processes. Notwithstanding the agreement of the Agent and the
Purchasers to a delay in the delivery of certain financial reports and ongoing
discussions between the Agent, the Purchasers and the Originators with respect
to the matters described in the Press Releases, the Agent and the Purchasers
have not waived any rights or remedies they may have with respect to the
matters, except as set forth in Section 3(a)(vi) of the Fifth Amendment, that
are the subject of such review and investigation or any related matters. The
Agent and the Purchasers hereby expressly reserve all of their rights and
remedies with respect to all of the foregoing, including all rights with
respect to any related Termination Event that may have occurred and not been
waived pursuant to Section 3(a)(vi) of the Fifth Amendment.

5.             Representations and Warranties.
With respect to the Sale Agreement, the Seller and each Servicer, and with
respect to the Purchase Agreement, the Originators hereby represent and warrant
to the Agent and the Purchasers as follows:

(i)            Representations and Warranties.
The representations and warranties contained in Article IV of the Receivables
Sale Agreement and Section 4 of the Purchase Agreement are true and correct as
of the date hereof (except to the extent such representations and warranties
relate solely to an earlier date, in which case they are true and correct as of
such earlier date and except for the matters to be corrected by the Specified
Adjustments).

(ii)           Enforceability. The execution
and delivery by the Seller and each Servicer of this Amendment, and the
performance by the Seller and each Servicer of this Amendment and the
Receivables Sale Agreement, as amended hereby (the “Amended 

 2
 

 

Agreement”), are within the
corporate powers of the Seller and each Servicer and have been duly authorized
by all necessary corporate or company action on the part of the Seller and each
Servicer. This Amendment and the Amended Agreement are valid and legally
binding obligations of the Seller and each Servicer, enforceable in accordance
with their terms, except as enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability.

(iii)          No Potential Termination Event.
No Potential Termination Event that will not be cured by this Amendment
becoming effective has occurred and is continuing.

(iv)          Specified Adjustments. Except
as has been disclosed by the Servicers to the Purchasers in the supplement to
the Fee Letter delivered in connection with the First Amendment, the adjustments
described in the definition of “Specified Adjustment”
do not result from (and are not alleged by any Governmental Authority or
Responsible Person to have resulted from) fraud, misconduct or similar
circumstances; and the matters disclosed in the Press Releases and related
matters will not have a Material Adverse Effect.

6.             Acknowledgment by Originators.
Each of SIRVA Relo and Executive Relo, in its capacity as an Originator,
acknowledges and agrees to the terms of this Amendment, including without limitation
Sections 2 and 3 hereof.

7.             Effect of Amendment. Except
as expressly amended and modified by this Amendment, all provisions of the
Receivables Sale Agreement shall remain in full force and effect; and the
Seller and the Servicers confirm and reaffirm their obligations under the
Amended Agreement and the other Transaction Documents. Without limiting the
foregoing, the Seller and the Originators confirm and reaffirm their obligation
under Section 3 of the Fee Letter, and acknowledge that nothing in this
Amendment shall limit the ability of the Agent and the Purchasers to require
changes to the terms of the Transaction Documents as contemplated by such
Section 3. After this Amendment becomes effective, all references in the
Receivables Sale Agreement (or in any other Transaction Document) to “this
Agreement”, “hereof”, “herein” or otherwise referring to the Receivables Sale
Agreement shall be deemed to be references to the Amended Agreement. This
Amendment shall not be deemed to expressly or impliedly waive, amend or
supplement any provision of the Receivables Sale Agreement other than as set
forth herein.

8.             Effectiveness. This
Amendment shall become effective upon the date on which all of the following
occur (the “Amendment Effective Date”): receipt by the Agent of
counterparts of this Amendment (whether by facsimile or otherwise) executed by
the Seller, the Servicers, the Originators, the Agent and the Required
Purchasers and consented to by Parent and NAVL.

9.             Headings; Counterparts. Section Headings in this
Amendment are for reference only and shall not affect the construction of this
Amendment. This Amendment may be executed by different parties on any number of
counterparts, each of which shall constitute an original and all of which,
taken together, shall constitute one and the same agreement.

 3
 

 

10.           Cumulative Rights and Severability.
All rights and remedies of the Purchasers and Agent hereunder shall be
cumulative and non-exclusive of any rights or remedies such Persons have under
law or otherwise. Any provision hereof that is prohibited or unenforceable in
any jurisdiction shall, in such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof and without affecting such provision in any other
jurisdiction.

11.           Governing Law. This Amendment
shall be governed by, and construed in accordance with, the internal laws (and
not the law of conflicts) of the State of Illinois.

[signature
pages begin on next page]

 4

 

IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date first
above written.

	
  

  	
  SIRVA RELOCATION CREDIT, LLC, as Seller

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas V. Gathany

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
  SIRVA RELOCATION LLC, as a Servicer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas V. Gathany

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE RELOCATION CORPORATION, as a Servicer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas V. Gathany

  
	
   

  	
  Title:

  	
  Treasurer

  

 

The undersigned
(i) consent and agree to the foregoing Amendment, (ii) confirm that references
in the Purchase Agreement to the Receivables Sale Agreement shall be references
to such agreement as amended by the Amendment, and (iii) confirm that the
Purchase Agreement is in full force and effect.

	
  SIRVA RELOCATION LLC, as an Originator

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Douglas V. Gathany

  	
   

  
	
  Title: 

  	
  Treasurer

  	
   

  
	
   

  	
   

  
	
  EXECUTIVE RELOCATION CORPORATION,

  as an Originator

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Douglas V. Gathany

  	
   

  
	
  Title:

  	
  Treasurer

  	
   

  

 

 S-1
 

 

 

	
  

  	
  LASALLE BANK NATIONAL ASSOCIATION, as Purchaser and
  Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marlee Zweigbaum

  
	
   

  	
  Title:

  	
  Vice President

  

 

 S-2
 

 

 

	
  

  	
  GENERAL ELECTRIC CAPITAL CORPORATION, as Purchaser

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rebecca L. Milligan

  
	
   

  	
  Title:

  	
  Duly Authorized Signatory

  

 

 S-3
 

 

 

	
  

  	
  THE CIT GROUP/BUSINESS CREDIT, INC., as Purchaser

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Debra Putzer

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 S-4
 

 

 

	
  

  	
   

  	
  E*TRADE BANK, as Purchaser

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sam Crow

  
	
   

  	
  Title:

  	
  Senior Manager

  

 

 S-5
 

 

 

	
  

  	
  U.S. BANK NATIONAL ASSOCIATION, as Purchaser

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matt Schulz

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

 S-6

 

 

	
  

  	
  ALLIED IRISH BANKS, P.L.C., as Purchaser

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joanne Gibson

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Margaret Brennan

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 S-8

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