Document:

exhibit10-4.htm

Exhibit 10.4

 

DEED OF TRUST

WHEN RECORDED MAIL TO:

 

CT  Lien Solutions

Attn:  Mortgage Recroding Team

330 N. Brand Blvd., Ste 700

Glendale, CA  91203

 

 

 

 

                                                                                              SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY

	 

 

THIS DEED OF TRUST is dated September 18, 2015, among TandyLleather Factory, Inc., A Delaware Corporation ("Grantor "); BOKF, NA dba Bank of Texas, whose address is P.O. Box 29775, Dallas, TX 75229-9775 (referred to below sometimes as "Beneficiary"); and Jeffrey L. Seasor, whose address is 5956 Sherry Lane, Suite 1100, Dallas, TX  75225 (referred to below as "Trustee").

 

CONVEYANCE AND GRANT. For valuable consideration, Granter conveys to Trustee in trust, with power of sale, for the benefit of Lender as Beneficiary, the following described real property, together with all existing or subsequently erected or  affixed  buildings,  improvements  and fixtures;  and  all easements,  rights of  way,  and appurtenances;  all water  and water  rights; and all other  rights,  royalties, and profits  relating  to the  real property,  including  without  limitation such rights as  Granter  may  have in all  minerals,  oil, gas,  geothermal  and similar  matters, (the "Real Property") located in Tarrant County, State of Texas:

 

See Exhibit "A", which is attached to this Deed of Trust and made a part of this Deed of Trust as if fully set forth herein.

 

The Real Property or its address is commonly known as 1900 SE Loop 820, Fort Worth, TX 76140.

 

CROSS-COLLATERALIZATION. In addition to the Note, this Deed of Trust secures all obligations,  debts  and  liabilities,  plus  interest  thereon,  of  Granter to Lender, or any one or more of them, as  well  as  all  claims  by  Lender  against  Granter  or  any  one  or  more  of  them,  whether  now  existing or hereafter arising, whether related or unrelated  to  the  purpose  of  the  Note,  whether  voluntary  or  otherwise,  whether  due  or  not  due, direct or indirect, determined or undetermined,  absolute  or  contingent,  liquidated  or  unliquidated,  whether  Granter  may  be  liable  individually  or  jointly  with  others,  whether  obligated  as  guarantor,  surety,  accommodation  party  or  otherwise.  However,  this  Deed  of  Trust  shall  not  secure,  and the "Indebtedness" shall not include, any obligations arising under Subchapters E and F  of  Chapter  342  of  the  Texas  Finance  Code,  as  amended.

 

Granter hereby absolutely assigns to Lender (also known as Beneficiary in this Deed of Trust) all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Granter grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents.

 

THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST.  THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:

 

PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Granter shall pay to Lender all amounts secured by this  Deed of Trust as they become due, and shall strictly and in a timely manner  perform all of  Grantor's  obligations  under the  Note, this  Deed of Trust, and the Related Documents.

 

PURPOSE OF LOAN. The Note in the amount of $10,000,000.00 represents, in part or in whole, cash or other financial accommodations advanced or committed by Lender to Granter on September 18, 2015 at Grantor's request and which Granter will use under its charter powers to discharge corporate debts. Granter represents to Lender that its board of directors has authorized its legally elected, qualified, and acting officers to execute the Note and this Deed of Trust.

 

POSSESSION AND MAINTENANCE OF THE PROPERTY. Granter agrees that Grantor's possession and use of the Property shall be governed by the following provisions:

 

Possession and Use. Until the occurrence of an Event of  Default, Granter  may  (1)  remain in possession and control of the  Property;  (2)  use, operate or manage the Property; and  (3)  collect the Rents from the Property.

 

Duty to Maintain. Granter shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value.

 

Compliance With Environmental Laws.  Granter represents and warrants  to  Lender that:  (1)  During the  period of  Grantor's  ownership  of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the  Property;  (2)  Granter  has no knowledge of, or reason to  believe that  there has been, except as previously  disclosed to  and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants  of the  Property, or (c) any  actual or threatened  litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Granter  nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance  on, under, about  or from the  Property; and  (b)  any  such activity  shall  be conducted  in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Granter authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust.  Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Granter or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Granter hereby (1) releases and waives any future claims  against Lender for indemnity or  contribution  in the  event Granter becomes liable for cleanup or other costs under any such  laws; and (2) agrees to  indemnify, defend, and hold harmless  Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender  may directly or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage,  disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was  or should have been known to Granter. The provisions of this section of the  Deed of Trust, including the obligation to indemnify  and defend,  shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Deed of Trust  and shall not be  affected by Lender's acquisition of any interest in the Property, whether  by foreclosure or otherwise.

 

Nuisance, Waste.  Granter shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property.  Without limiting the generality of the foregoing, Granter will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. This restriction will not apply to rights and easements (such as gas and oil) not owned by Granter and of which Granter has informed Lender in writing prior to Grantor's signing of this Deed of Trust.

 

Removal of Improvements. Granter shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Granter to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value.

 

Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust.

 

Compliance with Governmental Requirements. Granter shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act. Granter may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Granter has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Granter to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.

 

Duty to Protect. Granter agrees neither to abandon or leave unattended the Property. Granter shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property.

 

DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Deed of Trust upon the sale or transfer, without Lender's prior written consent, of all or any part  of  the  Real  Property,  or  any  interest  in the  Real Property.  A  "sale or transfer"  means the conveyance of Real Property or any right, title or interest in the Real Property; whether  legal, beneficial   or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale  contract,  land  contract,  contract  for  deed,  leasehold interest with a term greater than three  (3) years,  lease-option contract, or by sale, assignment,  or transfer  of any  beneficial interest in  or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property.  If any Granter is        a corporation, partnership or limited liability company, transfer also includes any change in ownership of more than twenty-five percent (25 %) of the voting stock, partnership interests or limited liability company interests, as the case may be, of such Grantor.   However, this option shall not be exercised by Lender it such exercise is prohibited by federal law or by Texas law.

 

TAXES AND LIENS.  The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust:

 

Payment. Granter shall pay when due (and in all events prior to delinquency)  all taxes , special taxes, assessments, charges (including water and sewer) , fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property.  Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust.

 

Right to Contest. Granter may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized.  If a lien arises or is filed as a result of  nonpayment, Granter shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen  (15) days  after  Granter  has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and Lender's reasonable attorneys'  fees, or other charges that could accrue as a result of a foreclosure  or sale under the lien.  In any contest, Granter shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.

 

Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property.

 

Notice of Construction. Granter shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials.  Granter will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Granter can and will pay the cost of such improvements.

 

PROPERTY DAMAGE INSURANCE.  The following provisions relating to insuring the Property are a part of this Deed of Trust.

 

Maintenance of Insurance.  Granter shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender.  Granter shall also procure and maintain comprehensive general liability insurance in such coverage amounts  as  Lender  may  request  with  Trustee  and  Lender  being  named  as  additional insureds in such liability insurance policies. Additionally, Granter shall maintain such other insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require.  Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender, with losses made payable to Lender. GRANTOR MAY FURNISH THE REQUIRED INSURANCE WHETHER THROUGH EXISTING POLICIES OWNED OR CONTROLLED BY GRANTOR OR THROUGH EQUIVALENT INSURANCE FROM ANY INSURANCE COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THE STATE OF TEXAS. If Granter fails to provide any required insurance or fails to continue such insurance in force, Lender may, but shall not be required to, do so at Grantor's expense,  and the cost of the insurance will be added to the Indebtedness.   If any such insurance is procured by Lender, Granter will be so notified, and Granter will have the option of furnishing equivalent insurance through any insurer authorized to transact business in Texas. Granter, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender.  Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Granter or any other person. Should the Real Property be located in an area designated by the Administrator of the Federal Emergency Management Agency as a special flood hazard area, Granter agrees to obtain and maintain Federal Flood Insurance, it available, tor the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan.

 

Application of Proceeds. Granter shall promptly notify Lender of any loss or damage to the Property.  Lender may make proof of loss if Granter fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Granter shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Granter from the proceeds for the reasonable cost of repair or restoration if Granter is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness.  If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Granter as Grantor's interests may appear.

 

Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Granter shall furnish to Lender a report on each existing policy of insurance showing:  (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the expiration date of the policy. Granter shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property.

 

LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Granter fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Granter is required to discharge or pay under this Deed of Trust or any Related Documents,  Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the  Property.  All such expenditures paid by Lender for such purposes will then bear interest at the Note rate from the date paid by Lender to the date of repayment by Grantor.  To the extent permitted by applicable law, all such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts.        Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default.

 

WARRANTY; DEFENSE OF TITLE.  The following provisions relating to ownership of the Property are a part of this Deed of Trust:

 

Title.  Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender.

 

Defense of Title.  Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Trustee or Lender under this Deed of Trust, Grantor shall defend the action at Grantor's expense.  Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation.

 

Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities.

 

Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing  in nature,  and shall  remain  in full force  and  effect  until such  time as Grantor's Indebtedness shall be paid in  full.

 

CONDEMNATION, JUDGMENTS AND AWARDS.  The following provisions relating to condemnation proceedings, judgments, decrees and awards for injury to the Property are a part of this Deed of Trust:

 

Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but ender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation.

 

Application of Net Proceeds. To the extent permitted by applicable law, all judgments, decrees and awards tor injury or damage  to the Property, or any part of the Property, and awards pursuant to proceedings for condemnation of the Property, are hereby absolutely assigned  to Lender, and if all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any  portion of the net proceeds of the award be applied to the Indebtedness or    the repair or restoration of the Property. The net proceeds of the award, judgment or decree shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation.

 

SECURITY AGREEMENT; INANCING STATEMENTS.  The  following  provisions  relating to this  Deed of  Trust  as  a security  agreement  are  a  part of  this  Deed  of Trust:

 

	
  

	
Security Agreement.  This  instrument  shall  constitute  a  Security  Agreement  to  the  extent  any  of  the  Property  constitutes  fixtures,   and Lender  shall  have all of the  rights  of  a  secured  party  under the  Uniform Commercial  Code  as  amended from time  to time.

 

	
  

	
Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Deed of Trust in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Deed of Trust as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest.  Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor  shall  assemble  any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law.

 

	
  

	
Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Deed of Trust.

 

	
  

	
FURTHER ASSURANCES; ATTORNEY-I N-FACT. The following provisions relating to  further  assurances  and  attorney-in-fact  are  a  part  of  this  Deed  of Trust:

 

	
  

	
Further Assurances.   At any time,  and from time to time, upon request of  Lender, Grantor will make, execute and deliver, or  will cause to     be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve ( 1) Grantor's obligations under the Note, this  Deed of Trust, and the  Related Documents, and  (2)  the liens and  security interests created by this Deed of Trust as first and prior liens on the  Property,  whether  now  owned  or  hereafter  acquired  by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph.

 

Attorney-in-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph.

 

FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor  under  this Deed of Trust, Lender shall execute and deliver to Grantor a release of this Deed of Trust lien and suitable statements of termination of any financing  statement on file evidencing  Lender's security  interest in the Rents and the Personal Property.  However, it is agreed that the payment   of all the Indebtedness and performance of such obligations shall not terminate this Deed of Trust unless the liens and interests created hereby are released by Lender by a proper recordable instrument.  Any filing tees required by law shall be paid by Grantor, it permitted by applicable   law.

 

      

       EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Deed of Trust: Payment Default. Grantor fails to make any payment when due under the Indebtedness.

 

Other Defaults.  Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Deed of Trust or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor.

 

       Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note or in any of the Related Documents.

 

Default on Other Payments.  Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien.

 

Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the Indebtedness or Grantor's ability to perform Grantor's obligations under this Deed of Trust or any of the Related Documents.

 

False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Deed of Trust or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time hereafter.

 

Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason.

 

Insolvency. The dissolution or termination of Grantor's existence as a going business, the insolvency of Grantor, the appointment of a receiver for  any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor.

 

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding. self help. repossession or any other method, by any creditor of Granter or by any governmental agency against any property securing  the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture -proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender  that is not  remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later.

 

Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

 

Insecurity.  Lender in good faith believes itself insecure.

 

Right to Cure. If any default, other than a default in payment, is curable and if Grantor has not been given a notice of a breach of the same provision of this Deed of Trust within the preceding twelve (12) months, it may be cured if Grantor, after  Lender sends  written  notice to  Grantor demanding cure of such default: (1)  cures the default  within twenty  (20)  days; or  (2)  if the cure requires more than twenty  (20)  days, immediately initiates steps which Lender deems in Lender's sole discretion to be  sufficient  to  cure  the  default  and  thereafter  continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.

 

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may exercise any one or more of the following rights and remedies:

 

Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this  Deed of Trust, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies.

 

      Accelerate Indebtedness. Lender may declare the unpaid principal balance of the Indebtedness due and payable. In no event will Grantor be required to pay any unearned interest.

 

Foreclosure. If Lender invokes the power of sale, Trustee, at the request of Lender, may sell all or any portion of the  Property at public auction to the highest bidder for cash at the location within the courthouse designated by the County Commissioners Court, or if no such  area  has been designated,  at the  area  designated in the notice of sale within the courthouse, between the hours of 10:00 A.M. and 4:00.M. on the first Tuesday  of any month, after the Trustee or its agent has given notice of the time  and place of sale and of the property to  be sold as required by the Texas Property Code, as then amended .

 

UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code.

 

Collect Rents. As additional security for the payment of the Indebtedness, Grantor hereby assigns to Lender all Rents as defined in the Definitions section of this Deed of Trust. Lender shall have the right at any time, and even though no Event of Default shall have occurred under this Deed of Trust, to collect and receive the Rents. Lender shall provide any notice required by applicable law with regard to such enforcement of its right to collect and receive the Rents. In addition, if the Property is vacant, Lender may rent or lease the Property. Lender shall not be liable for its failure to rent the Property, to collect any Rents, or to exercise diligence in any matter relating to the Rents; Lender shall be accountable only for Rents actually received. Lender neither has nor assumes any obligation as lessor or landlord with respect to any occupant of the Property. Rents so received shall be applied by Lender first to the remaining unpaid balance of the Indebtedness, in such order or manner as Lender shall elect, and the residue, if any, shall be paid to the person or persons legally entitled to the residue.

 

Trustee's Powers. Grantor hereby jointly and severally authorizes and empowers Trustee to sell all or any portion of the Property together or in lots or parcels, as Trustee may deem expedient, and to execute and deliver to the purchaser or purchasers of such Property good and sufficient deeds of conveyance of fee simple title, or of lesser estates, and bills of sale and assignments, with covenants of general warranty made on Grantor 's behalf . In no event shall Trustee be required to exhibit, present or display at any such sale any of the Property to be sold at such sale. The Trustee making such sale shall receive the proceeds of the sale and shall apply the same as provided below. Payment of the purchase price to Trustee shall satisfy the liability of the purchaser at any such sale of the Property, and such person shall not be bound to look after the application of the proceeds.

 

Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify person from serving as a receiver.

 

Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, (2) vacate the Property immediately upon the demand of Lender, or (3) if such tenants refuse to surrender possession of the Property upon demand, the purchaser shall be entitled to institute and maintain the statutory action of forcible entry and detainer and procure a writ of possession thereunder, and Grantor expressly waives all damages sustained by reason hereof .

 

Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or the Note or available at law or in equity.

 

Sale of the Property.  To the extent permitted by applicable law, Granter hereby waives any and all rights to have the Property marshalled.   In exercising its rights and remedies, the Trustee or Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales.  Lender shall be entitled to bid at any public sale on all or any portion of the Property.  Trustee may convey all or any part of the Property to the highest bidder for cash with a general warranty binding Grantor, subject to prior liens and to other exceptions to conveyance and warranty. Grantor waives all requirements of appraisement, if any The affidavit of any person having knowledge of the facts to the effect that  proper notice as  required by the Texas  Property  Code was  given shall be prima facie evidence of  the fact that such notice was in fact given. Recitals and statements of fact in any notice  or  in any  conveyance  to  the  purchaser  or  purchasers of the Property in any foreclosure sale under this Deed of Trust shall be prima facie evidence of the truth of such facts , and all prerequisites and requirements necessary to the validity of any such sale shall be presumed to have been performed. Any sale under the powers granted by this Deed of Trust shall be a perpetual bar against Grantor, Grantor's heirs, successors, assigns and legal representatives.

 

Proceeds. Trustee shall pay the proceeds of any sale of the Property (a) first, to the expenses of foreclosure, including reasonable fees or charges paid to the Trustee, including but not limited to fees for enforcing the lien, posting for sale, selling, or releasing the Property, (b) then to Lender the full amount of the Indebtedness, (c) then to any amount required by law to be paid before payment to Grantor, and (d) the balance, if any, to Grantor.

 

Attorneys' Fees; Expenses.   If Lender institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as Lender's attorneys'  fees at trial and upon any appeal.  Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including Lender 's reasonable attorneys'  fees  and expenses for  bankruptcy  proceedings  (including efforts to modify or vacate any automatic stay or injunction). appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal  fees , title  insurance,  and  fees  for  the  Trustee, to the extent  permitted by applicable  law.  Grantor also will pay any court costs, in addition to all other sums provided by law.  In the event of foreclosure of this Deed of Trust, Lender shall be entitled to recover from Grantor Lender 's reasonable attorneys' fees and actual disbursements that Lender necessarily incurs in pursuing such foreclosure.

 

POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee are part of this Deed of Trust:

 

Powers of Trustee. In addition to all powers of Trustee arising as  a  matter  of  law, Trustee  shall  have the  power to take the following  actions with respect to the  Property upon the written  request of  Lender and Grantor:  (a) join  in preparing and filing a map or  plat of the  Real Property, including the dedication of streets or other rights to the public;  (b) join in granting any easement or creating any restriction on the Real Property; and (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust.

 

Obligations to Notify. Trustee shall not be obligated to notify any other lienholder of the Property of the commencement of a foreclosure proceeding or of the commencement of any other action to which Lender may avail itself as a remedy, except to the extent required by applicable law or by written agreement.

 

Trustee. In addition to the rights and remedies set forth above, with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law.

 

 

Substitute Trustee. Lender, at Lender's option, from time to time, and more than once, may appoint in writing a successor or substitute trustee, with or without cause, including the resignation, absence, death, inability, refusal or failure to act of the Trustee. The successor or substitute trustee may be appointed without ever requiring the resignation of the former trustee and without any formality except for the execution and acknowledgment of the appointment by the beneficiary of this Deed of Trust. The successor or substitute trustee shall then succeed to all rights, obligations, and duties of the Trustee. This appointment may be made on Lender's behalf by the President, any Vice President, Secretary, or Cashier of Lender.

 

NOTICES. Any  notice required to be given  under this  Deed of Trust,  including without  limitation any  notice of default  and any  notice of sale  shall be given in writing, and shall be effective when actually delivered,  when actually  received by telefacsimile  (unless otherwise  required by  law), when deposited with a nationally recognized overnight courier, or, if  mailed, when  deposited  in the  United States  mail, as first  class,  certified or  registered mail postage prepaid, directed to the  addresses  shown near the  beginning of this  Deed of Trust.  Any  party may change  its address for notices  under this  Deed of Trust  by giving formal  written  notice to the other  parties, specifying  that the  purpose  of the  notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given     to all Grantors.

 

OTHER INDEBTEDNESS SECURED BY THE PROPERTY. To the extent permitted by applicable law, the Property hereby given by the Trustor, or pledged by the Mortgagor pursuant to  this  Deed  of  Trust  or  Mortgage,  respectively,  shall  not  only  secure  the  obligations  thereof  described  in  Note set forth above described herein and other obligations described herein, but is also given, granted, or  pledged  as  security  hereby  for  the repayment of any other obligations or indebtedness owed by the  Trustor  to  the  Beneficiary  or  Mortgagor  to  the  Mortgagee, or any of  them,  pursuant to any covenant, agreement herein contained, other agreement or other obligation, including but not limited to all other indebtedness of whatsoever kind or nature now owing or hereafter arising whether such indebtedness is owed directly by such parties, or was  acquired  through assignment, is contingent, primary, or secondary, and whether  such  indebtedness  is  evidenced  by  a  note  or  otherwise,  is  due, or not  due, secured, or not secured, or whether such indebtedness exists at  the  time  of  execution  or  this  instrument or not such indebtedness hereafter referred to as "Other  Indebtedness  Secured".  Any Other Indebtedness Secured shall be payable to the Beneficiary (or Trustee) or Mortgagee at the same place where the note above described is payable, and shall bear interest at the same rate per annum as set forth therein from the date such indebtedness arises until paid.

 

MISCELLANEOUS PROVISIONS.   The following miscellaneous provisions are a part of this Deed of Trust:

 

Amendments. This Deed of Trust, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Deed of Trust. No alteration of or amendment to this Deed of Trust shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.

 

Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property.

 

 

Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be used to interpret or provisions of this Deed of Trust.

 

Merger.  There shall be no merger of the interest or estate created by this Deed of Trust with any other interest or estate in the Property at    any time held by or for the benefit of Lender in any capacity, without the written consent of Lender.

 

Governing Law. This Deed of Trust will be governed  by federal  law applicable to  Lender  and, to the extent  not preempted  by federal  law, the laws of the State of Texas without regard to its  conflicts  of  law provisions.  This Deed of Trust has been accepted by Lender in the State of Texas.

 

Choice of Venue. If there is a lawsuit, and if the transaction evidenced by this Deed of Trust occurred in Dallas County, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Dallas County, State of Texas.

 

No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Deed of Trust unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Deed of Trust shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Deed of Trust. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Deed of Trust, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

 

Severability. If a court of competent jurisdiction finds any provision of this Deed of Trust to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance.  If feasible,   the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Deed of Trust. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Deed of Trust shall not affect the legality, validity or enforceability of any other provision of this Deed of Trust.

 

Successors and Assigns. Subject to any limitations stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors and assigns.  If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness.

 

Time is of the Essence. Time is of the essence in the performance of this Deed of Trust.

 

Waive Jury.  All parties to this Deed of Trust hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party.

 

DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Deed of Trust.  Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America.  Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Deed of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code:

 

Beneficiary.  The word "Beneficiary" means BOKF, NA dba Bank of Texas, and its successors and assigns.

 

Borrower. The word "Borrower" means Tandy Leather Factory, Inc. and includes all co-signers and co-makers signing the Note and all their successors and assigns.

 

Deed of Trust. The words "Deed of Trust" mean this Deed of Trust among Grantor, Lender, and Trustee, and includes without limitation all assignment and security interest provisions relating to the Personal Property and Rents.

 

Default.  The word "Default" means the Default set forth in this Deed of Trust in the section titled "Default".

 

Environmental Laws. The words "Environmental Laws" mean any and all state, federal  and  local statutes,  regulations  and  ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the  Hazardous  Materials Transportation  Act,  49  U.S.C. Section  1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.

 

Event of Default. The words "Event of Default" mean any of the events of default set forth in this Deed of Trust in the events of default section of this Deed of Trust.

 

Grantor.  The word "Granter" means Tandy Leather Factory, Inc.

 

Guarantor.  The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness.

 

Guaranty.  The word "Guaranty" means the guaranty from Guarantor to Lender, including without limiation a guaranty of all or part of the Note.

 

 

Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical,  chemical or infectious characteristics, may cause or pose a present or potential hazard to human  health  or  the  environment  when  improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words  "Hazardous  Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic  substances,  materials or  waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without  limitation, petroleum  and petroleum by-products or any fraction thereof and   asbestos.

 

Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property.

 

Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of,  consolidations  of  and  substitutions for  the  Note  or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Trustee     or Lender to enforce Grantor's obligations under this  Deed of Trust, together  with interest on such amounts  as  provided in this  Deed of  Trust. Specifically, without limitation, Indebtedness includes all amounts that may be indirectly  secured  by  the  Cross-Collateralization provision of this  Deed of Trust.

 

Lender.  The word "Lender" means BOKF, NA dba Bank of Texas, its successors and   assigns.

 

Note. The word "Note" means the Promissory Note in the principal amount of  $6,000,000.00  dated  September 18, 2015  and  the  Promissory Note in the principal amount of $10,000,000.00 dated September 18, 2015 together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the note or credit agreement. The maturity date of the Note is September 18, 2020. NOTICE TO GRANTOR:  THE NOTE CONTAINS A VARIABLE INTEREST RATE.

 

Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Granter, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition f the Property.

 

Property.  The word  "Property"  means collectively the Real Property and the Personal  Property.

 

Real Property.  The words "Real Property" mean the real property, interests and rights, as further described in this Deed of Trust.

 

Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements  and documents, whether now or hereafter existing, executed  in connection with the  Indebtedness.

 

Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property.  The word "Rents" shall also mean all "Rents" as defined in Chapter 64 of the Texas Property Code.

 

Trustee:  The word "Trustee" means Jeffrey L. Seasor, whose address is 5956 Sherry Lane, Suite 1100, DAllas, TX  75225 and any substitute or successor trustees.

 

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES TO TIS TERMS.

 

 

GRANTOR:

 

TANDY LEATHER FACTORY, INC.

 

 

By: /s/ Shannon L. Greene

Shannon Greene, Chief Financial Officer of Tandy Leather Factory, Inc.

 

 

 

	 

 

CORPORATE ACKNOWLEDGMENT

 

 

   

STATE OF TEXAS          )

                     ) SS

    COUNTY  OF TARRANT       )

 

This  instrument  was  acknowledged  before  me  onSeptember 18, 2015 by Shannon Greene, Chief Financial Officer of Tandy Leather Factory, Inc. a Delaware corporation, on behalf of said corporation.

 

    /s/ Linda C Hardy

    Notary Public, State of Texas

  

  

  

 

EXHIBIT A

 

 

TRACT I:

 

Block 1, CAMPUS INDUSTRIAL PARK, an Addition to the City of Fort Worth, Tarrant County, Texas, according to plat recorded in Volume 388-49, Page 61, Deed Records of Tarrant County, Texas.

 

TRACT II:

 

A tract of land out of the S. WOODY SURVEY, Abstract No. 1638, Tarrant County, Texas, and being more particularly described as follows:

Being a tract of land situated in the Samuel Woody Survey, Abstract No. 1638, in the City of Fort Worth, Tarrant County, Texas, being that same tract of land conveyed to Standard Motor Products, Inc. by deed recorded in Volume 13156, Page 311 of the Deed Records of Tarrant County, Texas, and being more particularly described by metes and bounds as follows:

 

Beginning at a 5/8 inch iron rod found for corner in the Northeast line of a tract of land conveyed to Texas Electric Service Company by deed recorded in Volume 2574, Page 545 of the Deed Records of Tarrant County, Texas, said point being the South corner of Block 1 of Campus Industrial Park, an addition to the City of Fort Worth, Tarrant County, Texas, according to the plat thereof recorded in Volume 388-49, Page 61 of the Deed Records of Tarrant County, Texas, same being the West corner of herein described tract;

 

 

Thence North 27 Degrees 57 Minutes 23 Seconds East, along the Southeast line of said addition, a distance of 697.28 feet to a 518 inch iron rod found for corner, said point being the West corner of Campus Business Park, an addition to the City of Fort Worth, Tarrant County, Texas, according to the plat thereof recorded in Volume 388-92, Page 6 of the Deed Records of Tarrant County, Texas, same being the North corner of herein described tract;

 

Thence South 62 Degrees 00 Minutes 56 Seconds East, along the Southwest line of said Campus Business Park addition, passing the South corner of said Campus Business Park addition, same being the most northerly West corner of a tract of land conveyed to Campus and 1-20 Joint Venture by deed recorded in Volume 8342, Page 68 of the Deed Records of Tarrant County, Texas, and continuing along the most northerly Southwest line of said Campus and 1-20 Joint Venture tract, for a total distance of

329.88 feet to a 518 inch iron rod found for corner, said point being the East corner of herein described tract;

 

Thence South 27 Degrees 57 Minutes 23 Seconds West, along the most southerly Northwest line of said Campus and 1-20 Joint Venture tract, a distance of 780.11 feet to a 5/8 inch iron rod found for corner, said point being the beginning of a non-tangent curve to the left having a delta of 158 Degrees 06 Minutes 28 Seconds, a radius of 60.00 feet and a chord bearing and distance of South 51 Degrees 00 Minutes 26 Seconds West, 117.82 feet;

 

Thence, in a southwesterly direction, along said curve to the left, an arc length of 165.57 feet to a % inch iron rod found for corner in the Northeast line of said Texas Electric Service Company tract, said point being the South corner of herein described tract;

 

Thence North 28 Degrees 02 Minutes 34 Seconds West, along the Northeast line of said Texas Electric Service Company Tract, a distance of 342.27 feet to the Point of Beginning and containing 259, 182.73 square feet or 5.9500 acres of land.EX-10.1

 Exhibit 10.1 

AMENDED AND RESTATED GUARANTY AGREEMENT 

AMENDED AND RESTATED GUARANTY AGREEMENT, dated as of September 18, 2015, made by MAT-RX DEVELOPMENT, L.L.C., a Texas limited liability
company (the “Guarantor”), in favor of JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the lenders (the “Lenders”) from time to time parties to
the Amended and Restated Credit Agreement, dated as of even date herewith (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among USMD HOSPITAL AT ARLINGTON, L.P., a Texas limited
partnership (the “Borrower”), the Lenders and the Administrative Agent. 
 W I T N E S S E T H: 

WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make Loans to the Borrower upon the terms and subject to the
conditions set forth therein; 
 WHEREAS, the Guarantor is a limited partner of the Borrower; 

WHEREAS, the Borrower and the Guarantor are engaged in related businesses, and the Guarantor will derive substantial direct and indirect
benefit from the making of the Loans; and 
 WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective
Loans to the Borrower under the Credit Agreement that the Guarantor shall have executed and delivered this Agreement to the Administrative Agent for the benefit of the Guaranteed Parties. 

NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent and the Lenders to enter into the Credit Agreement and
to induce the Lenders to make Loans to the Borrower under the Credit Agreement, the Guarantor hereby agrees with the Administrative Agent, for the benefit of the Guaranteed Parties, as follows: 

1. Defined Terms. (a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement. 
 (b) As used herein, the following terms have the following meanings: 

“Agreement” means this Amended and Restated Guaranty Agreement, as the same may be amended, restated, supplemented or
otherwise modified from time to time. 
 “Guaranteed Parties” means the collective reference to the Administrative Agent
and the Lenders and their respective successors and assigns. 
 “Guaranteed Share” has the meaning specified in
Section 3 of this Agreement. 
 “Limited Partnership Agreement” means the Third Amended and Restated Agreement of
Limited Partnership of USMD Hospital at Arlington, L.P. entered into as of September     , 2015, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

  

					
	 Amended and Restated Guaranty Agreement
 Mat-Rx
Development, L.L.C.
	 		 	

 “Obligations” means the collective reference to (a) the unpaid principal of
the Loans, and (b) all interest on (including interest accruing after the maturity of the Loans and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding,
relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans pursuant to the Credit Agreement and the Notes. 

“paid in full” means (a) the payment in full in cash and performance of all Obligations, and (b) the termination of
all Commitments. 
 “Solvent” means, when used with respect to any Person, that as of any date of determination,
(a) the amount of the “present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as such quoted terms
are determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of such Person will, as of such date, be greater than the amount that
will be required to pay the liability of such Person on its debts as such debts become absolute and matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business, and
(d) such Person will be able to pay its debts as they mature. For purposes of this definition, (i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) right to payment, whether or not
such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an equitable remedy for breach of performance if such breach
gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured. 

“THR Guaranty” means the Amended and Restated Guaranty Agreement, dated as of the date hereof, executed by THR in favor of
the Administrative Agent, for the benefit of the Secured Parties, as amended, restated, supplemented or otherwise modified from time to time. 

(c) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this Agreement, and section and paragraph references are to this Agreement unless otherwise specified. 

(d) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 

2. Guarantee. (a) The Guarantor hereby unconditionally and irrevocably guarantees, as a primary obligor and not merely as a
surety, to the Administrative Agent, for the benefit of the Guaranteed Parties and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations. 
 (b) Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of the Guarantor hereunder and under the other Loan Documents shall in no event exceed the amount which can be guaranteed by the Guarantor under applicable federal and state laws relating to the insolvency of
debtors. 

  

					
	 Amended and Restated Guaranty Agreement
 Mat-Rx
Development, L.L.C.
	 	2	 	

 (c) The Guarantor further agrees to pay any and all expenses (including, without limitation, all
reasonable fees, expenses and disbursements of counsel) which may be paid or incurred by the any of the Guaranteed Parties in enforcing, or obtaining advice of counsel in respect of, enforcing any rights with respect to, or collecting against, the
Guarantor under this Agreement. 
 (d) No payment or payments made by the Borrower, the Guarantor, any other guarantor or any other Person
or received or collected by any Guaranteed Party from the Borrower, the Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of the Guarantor hereunder which shall, notwithstanding any such payment or payments (other than payments made by the
Guarantor in respect of the Obligations or payments received or collected from the Guarantor in respect of the Obligations), remain liable for the Obligations up to the maximum liability of the Guarantor hereunder until the Obligations are paid in
full. 
 (e) The Guarantor agrees that whenever, at any time, or from time to time, it shall make any payment to any Guaranteed Party on
account of its liability hereunder, it will notify the Administrative Agent in writing that such payment is made under this Agreement for such purpose. 

3. Limitation. (a) Anything in this Agreement to the contrary notwithstanding, the maximum amount payable by the Guarantor to the
Guaranteed Parties under Section 2(a) of this Agreement shall not exceed the Guarantor’s Guaranteed Share. The term “Guaranteed Share” means, as to the Guarantor, an amount equal to the sum of: (i) 45.3959% of the
outstanding principal of the Obligations on the Calculation Date; plus (ii) 45.3959% of all accrued and unpaid interest on the Obligations on the Calculation Date; plus (iii) 45.3959% of all interest accruing on the
Obligations from the Calculation Date until the date that all of the Obligations have been paid in full. The term “Calculation Date” means as to any particular Obligation, the earlier of the maturity thereof or the date that
particular Obligation is accelerated by any of the Guaranteed Parties or otherwise becomes due and owing. The Guarantor understands that different Obligations may have a different Calculation Date as determined by the Guaranteed Parties, for each
Obligation. The records of the Guaranteed Parties with respect to a Calculation Date and the amount of the Guarantor’s Guaranteed Share shall be conclusive and binding on the Guarantor. The Guarantor further understands and agrees that
(a) any written or oral demand for payment of the Guaranteed Share in a specific amount will not preclude any Guaranteed Party from thereafter demanding such additional amounts as may become due and owing under this Agreement after the date of
such demand, and (b) if any Guaranteed Party obtains partial payment from any source other than the Guarantor (it being understood that the Guaranteed Parties are not required to obtain payment from any other source prior to making demand on
the Guarantor), the amount owing by the Guarantor under this Agreement will not be a percentage of the deficiency, but will instead be a greater amount, calculated as set forth in the definition of “Guaranteed Share” herein. 

  

					
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 (b) The Guarantor’s Guaranteed Share may be reduced or increased, subject to the other terms
hereof, as follows: 
 (i) Reduction. Subject to satisfaction of each of the requirements set forth below, the
Guarantor’s Guaranteed Share may be reduced on the 30th day after the Guarantor has provided the Administrative Agent with written notice of the Guarantor’s sale or other transfer of ownership, after the Closing Date, of any units of
ownership in the Borrower (a “Transfer”), which written notice shall: 
 (A) state the number of units of
ownership in the Borrower sold or otherwise transferred by the Guarantor pursuant to such Transfer; 
 (B) state the name,
address, and contact information for the Person to whom the Guarantor sold or otherwise transferred such units pursuant to such Transfer (such Person herein the “Transferee”); 

(C) contain a representation and warranty that the Transfer of the Guarantor’s units of ownership in the Borrower was to a
Transferee permitted under the Limited Partnership Agreement; 
 (D) attach a copy of the document executed by the Guarantor
(or if the Transfer is on account of the death, incapacity, or liquidation of the Guarantor, its representative) and the Transferee effecting the Transfer; 

(E) state the Class (as defined in the Limited Partnership Agreement) to which the Transferee belongs after giving effect to,
and as a result of the units subject to, the Transfer; 
 (F) attach a Guaranty (as defined in the Credit Agreement)
substantially in the form of this Agreement duly executed by the Transferee whereby the Transferee agrees to be bound as a Guarantor under the terms of such Guaranty (as defined in the Credit Agreement) and to guarantee the payment and performance
of the Obligations as provided in such Guaranty (as defined in the Credit Agreement) in accordance with its percentage ownership of the outstanding units issued by the Borrower; 

(G) if the Transferee is not an individual, attach the documentation required by Section 4.01(c) of the Credit Agreement
with respect to such Transferee; 
 (H) contain a representation and warranty that the Transfer was made in accordance with
the terms of the Limited Partnership Agreement and all applicable Requirements of Law; 
 (I) attach evidence of the
effective grant of all consents (if any) required by the Limited Partnership Agreement relating to such Transfer; and 

  

					
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 Mat-Rx
Development, L.L.C.
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 (J) attach a current financial statement of the Transferee, certified by the
Transferee to be true, correct and complete; 
 provided that in no event may the Guaranteed Share of the Guarantor be reduced
(x) at any time during the existence of any Default or if any Default would occur as a result thereof, or (y) if any of the representations and warranties contained in the Guaranty (as defined in the Credit Agreement) executed and
delivered by the Transferee are not true and correct; provided, further, that the Transferee must be approved in writing by the Administrative Agent; and 

(ii) Increase. The Guarantor’s Guaranteed Share will immediately and automatically be increased on the date the
Guarantor purchases or otherwise acquires any units of ownership in the Borrower, in addition to the units of ownership in the Borrower that the Guarantor owns as of the date of this Agreement, as if the Guarantor had owned such additional units as
of the date of this Agreement, the Guarantor’s Guaranteed Share to be a percentage equal to the Guarantor’s percentage ownership of the outstanding ownership units issued by the Borrower. The Guarantor shall promptly provide written notice
to the Administrative Agent of any such increase and, upon the request of the Administrative Agent, shall execute and deliver to the Administrative Agent a new Guaranty (as defined in the Credit Agreement) substantially in the form of this Agreement
evidencing such Guarantor’s new Guaranteed Share. 
 (iii) Further Increase. In the event that by operation of
the proviso in the first sentence of Section 3(a) of the THR Guaranty, less than 100% of the outstanding principal of and interest on the Loans is guaranteed by the Guarantors (as defined in the Credit Agreement), the Guaranteed Share of the
Guarantor shall be increased ratably with the Guaranteed Shares (as defined in the Credit Agreement) of the other Guarantors (other than THR) to a level such that 100% of the outstanding principal of and interest on the Loans is guaranteed by all of
the Guarantors. Any determination by the Administrative Agent of an increase in the Guaranteed Share of the Guarantor pursuant to the immediately preceding sentence shall be conclusive and binding upon the Guarantor. Upon the request of the
Administrative Agent, the Guarantor shall promptly execute and deliver to the Administrative Agent a new Guaranty (as defined in the Credit Agreement) substantially in the form of this Agreement evidencing such Guarantor’s new Guaranteed Share
as a result of such increase. 
 The Guarantor will be obligated to pay its own Guaranteed Share (as the same may be reduced or increased in accordance with
the foregoing provisions) of the Obligations and the Guarantor acknowledges that its Guaranteed Share (as the same may be reduced or increased in accordance with the foregoing provisions) of the Obligations will not be reduced by amounts that the
Administrative Agent may receive or collect from the Collateral or the Borrower or from any payments or settlements with any other Guarantor. 

4. Right of Set-off. If an Event of Default shall have occurred and be continuing, the Guarantor hereby irrevocably authorizes each
Guaranteed Party at any time and from time to time without notice to the Guarantor or any other guarantor, any such notice being expressly waived by the Guarantor, to set-off and appropriate and apply any and all deposits (general or

  

					
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 Mat-Rx
Development, L.L.C.
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special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Guaranteed Party to or for the credit or the account of the Guarantor, or any part thereof in such amounts as such Guaranteed Party may elect, against and on account of the obligations and
liabilities of the Guarantor to such Guaranteed Party hereunder and claims of every nature and description of such Guaranteed Party against the Guarantor, in any currency, whether arising hereunder, under the Credit Agreement, any Note, any Loan
Documents or otherwise, as such Guaranteed Party may elect, whether or not any Guaranteed Party has made any demand for payment and although such obligations, liabilities and claims may be contingent or unmatured. Each Guaranteed Party shall notify
the Guarantor promptly of any such set-off and the application made by such Guaranteed Party, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Guaranteed Party
under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Guaranteed Party may have. 

5. No Subrogation. Notwithstanding any payment or payments made by the Guarantor hereunder or any set-off or application of funds of
the Guarantor by any Guaranteed Party, the Guarantor not shall be entitled to be subrogated to any of the rights of any Guaranteed Party against the Borrower or any other guarantor or any collateral security or guarantee or right of offset held by
any Guaranteed Party for the payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution, reimbursement or indemnification from the Borrower or any other guarantor in respect of payments made by the Guarantor
hereunder, until all amounts owing to the Guaranteed Parties by the Borrower on account of the Obligations are paid in full. If any amount shall be paid to the Guarantor on account of such subrogation, contribution, reimbursement or indemnification
rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by the Guarantor in trust for the Guaranteed Parties, segregated from other funds of the Guarantor, and shall, forthwith upon receipt by the
Guarantor, be turned over to the Administrative Agent in the exact form received by the Guarantor (duly indorsed by the Guarantor to the Administrative Agent, if required), to be applied against the Obligations, whether matured or unmatured, in such
order as the Administrative Agent may determine. 
 6. Amendments, etc. with respect to the Obligations; Waiver of Rights. The
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any other guarantor and without notice to or further assent by any other guarantor, any demand for payment of any of the Obligations made by
any Guaranteed Party may be rescinded by such party and any of the Obligations continued, and the Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with
respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by any Guaranteed Party, and the Credit Agreement, the Notes and the other Loan
Documents and any other documents executed and delivered in connection therewith may be amended, restated, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required Lenders, as the case may be) may deem
advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the any Guaranteed Party for the payment of the Obligations may be sold, exchanged, waived, 

  

					
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surrendered or released. None of the Guaranteed Parties shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or any
property subject thereto. When making any demand hereunder against the Guarantor, any Guaranteed Party may, but shall be under no obligation to, make a similar demand on the Borrower or any other guarantor, and any failure by any Guaranteed Party to
make any such demand or to collect any payments from the Borrower or any other guarantor or any release of the Borrower or any other guarantor shall not relieve any guarantor in respect of which a demand or collection is not made or any guarantor
not so released, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of any Guaranteed Party against the Guarantor. For the purposes hereof “demand” shall include the commencement and
continuance of any legal proceedings. To the extent not prohibited by applicable law, the Guarantor waives (a) all rights of the Guarantor under Rule 31, Texas Rules of Civil Procedure, Chapter 43 of the Texas Civil Practice and Remedies Code,
and Section 17.001 of the Texas Civil Practice and Remedies Code; (b) to the extent the Guarantor is subject to the Texas Revised Partnership Act (“TRPA”) or Section 152.306 of the Texas Business Organizations Code
(“BOC”), compliance by the Guaranteed Parties with Section 3.05(d) of TRPA and Section 152.306(b) of BOC; and (c) all rights of the Guarantor under Sections 51.003, 51.004, and 51.005 of the Texas Property Code (as
amended from time to time). 
 7. Guarantee Absolute and Unconditional. The Guarantor waives any and all notice of the creation,
renewal, extension, increase or accrual of any of the Obligations and notice of or proof of reliance by any Guaranteed Party upon this Agreement or acceptance of this Agreement; the Obligations and the Loan Documents, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed, increased, extended, amended or waived, in reliance upon this Agreement; and all dealings between the Borrower and the Guarantor, on the one hand, and the Guaranteed
Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon this Agreement. The Guarantor waives diligence, presentment, protest, demand for payment, notice of acceleration, notice of intent
to accelerate, and notice of default or nonpayment to or upon the Borrower or any other guarantor with respect to the Obligations. The Guarantor understands and agrees that this Agreement shall be construed as a continuing, absolute and
unconditional guarantee of payment without regard to (a) the validity, regularity or enforceability of the Credit Agreement, any Note or any other Loan Document, any of the Obligations or any other collateral security therefor or guarantee or
right of offset with respect thereto at any time or from time to time held by any Guaranteed Party, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted
by the Borrower against any Guaranteed Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or the Guarantor) which constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrower for the Obligations, or of the Guarantor under this Agreement, in bankruptcy or in any other instance. When pursuing its rights and remedies hereunder against the Guarantor, any Guaranteed Party may, but shall be under no
obligation to, pursue such rights and remedies as it may have against the Borrower or any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by any Guaranteed
Party to pursue such other rights or remedies or to collect any payments from the Borrower or any such other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower
or any such other Person or any such collateral security, guarantee or right of offset, shall not relieve the Guarantor of any 

  

					
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 Mat-Rx
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	 	7	 	

 
liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of any of the Guaranteed Parties against the Guarantor. This
Agreement shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Guarantor and its successors and assigns, and shall inure to the benefit of the Guaranteed Parties, and their respective
successors, indorsees, transferees and assigns, until all the Obligations and the obligations of the Guarantor under this Agreement shall have been satisfied by payment in full. 

8. Reinstatement. This Agreement shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by any Guaranteed Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower, the Guarantor, any other guarantor or
any other Loan Party, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower, the Guarantor, any other guarantor or any other Loan Party or any substantial part of any
of their respective property, or otherwise, all as though such payments had not been made. 
 9. Payments. The Guarantor hereby
guarantees that payments hereunder will be paid to the Administrative Agent without set-off or counterclaim in U.S. Dollars at the office of the Administrative Agent specified in Section 9.01 of the Credit Agreement or such other location as
may be specified by the Administrative Agent. 
 10. Taxes. The Guarantor agrees that all payments to be made under this
Agreement shall be made without setoff or counterclaim and free and clear of, and without deduction for, any taxes, levies, imposts, duties, charges, fees, deductions, withholdings or restrictions or conditions of any nature whatsoever now or
hereafter imposed, levied, collected, withheld or assessed by any country or by any political subdivision or taxing authority thereof or therein (“Taxes”). If any Taxes are required to be withheld from any amounts payable to any
Guaranteed Party hereunder, the amounts so payable to the applicable Guaranteed Party shall be increased to the extent necessary to yield to the such Guaranteed Party (after payment of all Taxes) the amounts payable hereunder in the full amounts so
to be paid. Whenever any Tax is paid by the Guarantor, as promptly as possible thereafter, the Guarantor shall send the Administrative Agent an official receipt showing payment thereof, together with such additional documentary evidence as may be
required from time to time by the Administrative Agent or other applicable Guaranteed Party. 
 11. Representations and Warranties.
To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective Loans to the Borrower thereunder, the Guarantor hereby represents and warrants to the Administrative Agent and
each of the other Guaranteed Parties that: 
 (a) it is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and has the organizational power and authority and the legal right to own and operate its property, to lease the property it operates and to conduct the business in which it is currently engaged; 

  

					
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 (b) it has the organizational power and authority and the legal right to execute and deliver, and
to perform its obligations under, this Agreement, and has taken all necessary organizational action to authorize its execution, delivery and performance of this Agreement; 

(c) this Agreement constitutes a legal, valid and binding obligation of the Guarantor enforceable in accordance with its terms, except as
affected by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors’ rights generally and general equitable principles; 

(d) the execution, delivery and performance of this Agreement will not violate any provision of any Requirement of Law or Contractual
Obligation of the Guarantor and will not result in or require the creation or imposition of any Lien on any of the properties or revenues of the Guarantor pursuant to any Requirement of Law or Contractual Obligation of the Guarantor; 

(e) no consent or authorization of, filing with, or other act by or in respect of, any arbitrator or Governmental Authority and no consent of
any other Person (including, without limitation, any equity owner or creditor of the Guarantor) is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement; 

(f) no litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the
Guarantor, threatened by or against the Guarantor or against any of its properties or revenues with respect to this Agreement or any of the transactions contemplated hereby; 

(g) the Guarantor is, and after giving effect to this Agreement and the incurrence of all Obligations being incurred in connection herewith
and the Credit Agreement will be and will continue to be, Solvent; and 
 (h) there are no conditions precedent to the effectiveness of this
Agreement that have not been satisfied or waived. 
 12. Financial Information; Fundamental Changes. (a) The Guarantor agrees
that it will provide to the Administrative Agent such financial and other information regarding the Guarantor as the Administrative Agent may reasonably request from time to time. 

(b) The Guarantor agrees that it will not enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or Dispose of all or substantially all of its property or business, in each case without the prior written consent of the Administrative Agent. 

13. Information Regarding Borrower. The Guarantor assumes all responsibility for being and keeping itself informed of the
Borrower’s business, financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that the Guarantor assumes and incurs under this Agreement,
and agrees that none of the Guaranteed Parties has any duty to advise the Guarantor of information regarding those circumstances or risks. 

  

					
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Development, L.L.C.
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 14. Authority of Administrative Agent. The Guarantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect to any action taken by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any option, right, request, judgment or other right or
remedy provided for herein or resulting or arising out of this Agreement shall, as between the Administrative Agent and the Guaranteed Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from
time to time among them, but, as between the Administrative Agent and the Guarantor, the Administrative Agent shall be conclusively presumed to be acting as agent for the Guaranteed Parties with full and valid authority so to act or refrain from
acting, and the Guarantor shall not be under any obligation, or entitlement, to make any inquiry respecting such authority. 
 15.
Notices. All notices, requests and demands to or upon the Administrative Agent, any Lender or the Guarantor to be effective shall be in writing (or by facsimile confirmed in writing) and shall be deemed to have been duly given or made
(1) when delivered by hand, or (2) if given by mail, when deposited in the mails by certified mail, return receipt requested, or (3) if by facsimile, when sent and receipt has been confirmed, addressed as follows: 

(a) if to the Administrative Agent or any Lender, at its address or transmission number for notices provided in Section 9.01 of the
Credit Agreement; and 
 (b) if to the Guarantor, at its address or transmission number for notices set forth under its signature below.

 The Administrative Agent, each Lender and the Guarantor may change its address and transmission numbers for notices by notice in the
manner provided in this Section. 
 16. Submission To Jurisdiction; Waivers. The Guarantor hereby irrevocably and unconditionally:

 (a) submits for itself and its property in any legal action or proceeding relating to this Agreement, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of Texas, the courts of the United States of America for the Northern District of Texas, and appellate courts from any thereof; 

(b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to
the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to the Guarantor at its address referred to in Section 15 or at such other address of which the Administrative Agent shall have been notified pursuant thereto; and 

(d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the
right to sue in any other jurisdiction. 

  

					
	 Amended and Restated Guaranty Agreement
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Development, L.L.C.
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 17. Acknowledgements. The Guarantor hereby acknowledges that: 

(a) the Guarantor has been advised by counsel in the negotiation, execution and delivery of this Agreement; 

(b) none of the Guaranteed Parties has any fiduciary relationship with or duty to the Guarantor arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between the Guaranteed Parties, on one hand, and the Guarantor, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; 

(c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Guaranteed Parties or among the Guarantor and the Guaranteed Parties; and 
 (d) the Guarantor has received and reviewed copies of
the Loan Documents. 
 18. Subordination. All existing and future indebtedness and liabilities of the Borrower to the Guarantor are
hereby subordinated to the prior payment in full of the Obligations and such indebtedness and liabilities of the Borrower to the Guarantor, if the Administrative Agent so requests, shall be collected, enforced and received by the Guarantor as
trustee for the Administrative Agent and shall be paid over to the Administrative Agent promptly on account of the Obligations, but without reducing or affecting in any manner any of the obligations of the Guarantor under any of the other provisions
of this Agreement. 
 19. Counterparts. This Agreement may be executed by the Guarantor on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually
executed counterpart hereof. 
 20. Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 21. Amendments in Writing; No Waiver; Cumulative
Remedies. (a) None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the Guarantor and the Administrative Agent. 

(b) Neither the Administrative Agent nor any other Guaranteed Party shall by any act (except by a written instrument pursuant to paragraph
21(a) hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof. No failure to
exercise, nor any delay in exercising, on the part of any other Guaranteed Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial 

  

					
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exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by any Guaranteed Party
of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which such Guaranteed Party would otherwise have on any future occasion. 

(c) The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights
or remedies provided by law. 
 22. Section Headings. The section headings used in this Agreement are for convenience of reference
only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof. 
 23. Successors and
Assigns. This Agreement shall be binding upon the successors and assigns of the Guarantor and shall inure to the benefit of the Guaranteed Parties and their successors and assigns; provided that the Guarantor may not assign, transfer or
delegate any of its rights or obligations under this Agreement without the prior written consent of the Administrative Agent. 
 24.
Amendment and Restatement. This Agreement amends and restates that certain Guaranty Agreement executed by Guarantor in favor of Administrative Agent and Lenders dated as of September 13, 2013. The Obligations guaranteed hereby include,
but are not limited to, the Obligations arising under all Loans (whether Tranche A Term Loans or Tranche B Term Loans). 
 25. Governing
Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of Texas. 
 26.
WAIVER OF SPECIAL DAMAGES. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE GUARANTOR SHALL NOT ASSERT, AND HEREBY WAIVES, ANY CLAIM AGAINST THE GUARANTEED PARTIES ON ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE
DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS OR THE USE OF THE PROCEEDS THEREOF. 

27. WAIVER OF JURY TRIAL. EACH OF THE GUARANTOR, THE ADMINISTRATIVE AGENT AND THE LENDERS (BY THE ADMINISTRATIVE AGENT’S
ACCEPTANCE OF THIS AGREEMENT) HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. 

28. INTEGRATION. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT OF THE GUARANTOR AND THE GUARANTEED PARTIES
WITH RESPECT TO THE SUBJECT MATTER HEREOF, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 

[Signature Page Follows] 

  

					
	 Amended and Restated Guaranty Agreement
 Mat-Rx
Development, L.L.C.
	 	12	 	

 IN WITNESS WHEREOF, the undersigned has on the date set forth in the acknowledgment hereto,
effective as of the date first written above, duly executed and delivered this Agreement. 
  

			
	 MAT-RX DEVELOPMENT, L.L.C.
  

By: USMD Inc., its sole member

		
	    By:	 	/s/ JOHN HOUSE, M.D.
		 	 Name: John House, M.D.
 Title: Chairman and
Chief Executive Officer

		 	  
 Address for Notices:

 
 6333 North State Highway 161, Ste. 200

Irving, Texas 75038
  

Facsimile: (214) 493 4090

  
  
  

  

					
	  
 Mat-Rx Development, L.L.C.
	 	 Signature Page

Amended and Restated Guaranty Agreement

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