Document:

Unassociated Document

Exhibit 10.6

 

DEED OF TRUST

 

THIS DEED OF TRUST is made April 14, 2008, by SEAWRIGHT SPRINGS. LLC, a Virginia limited liability company and SEAWRIGHT HOLDINGS, INC., a Delaware corporation, as Grantors (jointly and severally hereinafter referred to as the "Grantor"), and PALMA COLLINS, a resident of, 3859 Centerview Dr., Suite 300, Chantilly VA 20151, Fairfax County, as Trustee and Grantee, (whether one or more hereinafter the "Trustees").

 

WHEREAS, simultaneously with the execution and delivery of this Deed of Trust, the Grantor has agreed to borrow from PIERRE L. PALIAN, having an address of 229 Midsummer Cir., Gaithersburg, MD 20878 (the "Lender") the full sum of $375,000.00 (the "Principal Sum"), for which Principal Sum the Grantor has issued its Deed of Trust Note of even date herewith, payable to the order of the Lender in the amount of the Principal Sum (which Deed of Trust Note, together with any extensions or renewals thereof or substitutions therefore, is hereinafter referred to as the "Note"), the Principal Sum and interest thereon to be payable at the time or times, in the manner and at the rate or rates stated in the Note; and

 

WHEREAS, the Grantor desires to secure the payment of the Principal Sum and the interest thereon according to the terms of the Note, all other moneys now or hereafter advanced or expended by the Trustees or the Lender as provided for herein, by the terms of any of the other Loan Documents (as hereinafter defined) or by applicable law and all costs, expenses, charges, liabilities, commissions, half-commissions and attorney's fees now or hereafter chargeable to, incurred by or disbursed by the Trustees, the Lender or the Grantor as provided herein (collectively, the "Obligations") and the performance of the terms, conditions and provisions of the Note, this Deed of Trust and of all other instruments, agreements and documents, previously, simultaneously or hereafter executed and delivered by the Grantor or any other party, singly or jointly with another party or parties, evidencing, securing, guarantying or in connection with the Obligations. The Note, this Deed of Trust and all such other instruments, agreements and documents are hereinafter sometimes referred to collectively as the "Loan Documents".

 

NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor does grant, bargain, sell, convey and assign to the Trustees, the survivors or survivor of them, and their or his successors or successor and assigns and does hereby grant a lien and security interest to the Lender and the Trustees and its, their or his successors or successor, in, on and to the following (collectively, the "Property"):

 

ALL those lots or parcels of real property situate in Augusta County, Commonwealth of Virginia, and more particularly described in Exhibit A attached hereto and made a part hereof, together with all buildings, structures and improvements both now and hereafter located thereon or therein and all replacements thereof (collectively, the "Real Property").

 

TOGETHER with all of the Grantor's interest in all building materials, machinery, equipment, furniture, fixtures and tangible personal property of every kind and nature whatsoever  (other than consumable goods, inventory, and trade fixtures or other personal property owned by tenants occupying all or any portion of the Real Property), now owned or hereafter acquired and now or hereafter located on, contained in or upon or attached to, or used or usable in connection with, any present or future use or operations of the Real Property, or any portion thereof, together with all replacements thereof, substitutions therefore and additions thereto and all proceeds thereof.

 

  

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TOGETHER with all right, title and interest of the Grantor, including any after-acquired title or reversion, in and to the beds of the ways, streets, avenues and alleys adjoining the Real Property and the rights, alleys, ways, tenements, easements, appurtenances, passages, riparian rights, liberties, advantages, accessions and privileges now or hereafter appertaining thereto, including without limitation, any right of the Grantor in and to common elements relating to the Real Property, or any portion thereof.

 

TOGETHER with any and all judgments, awards of damages, payments, proceeds, settlements or other compensation heretofore or hereafter made, including interest thereon, and the right to receive the same, as a result of, in connection with, or in lieu of (a) any taking of the Real Property, or any part thereof, under the power of eminent domain, either temporarily or permanently, (b) any change or alteration of the grade of any street, and (c) any other injury or damage to, or decrease in value of, the Real Property or any part thereof (collectively, the "Condemnation Awards"), to the extent of the Obligations, and all attorney's fees, costs and disbursements, if any, incurred by the Trustees or the Lender in connection with the collection of the Condemnation Awards.

 

TOGETHER with any and all payments, proceeds, settlements or other compensation heretofore or hereafter made, including any interest thereon, and the right to receive the same, from any and all insurance policies covering the Real Property, or any portion thereof or any building materials, machinery, equipment, furniture, fixtures or tangible personal property located therein or thereon.

 

TOGETHER with all of the rents, royalties, issues, profits, revenues, income, accounts and other benefits of the Real Property, or derived from or arising out of the use or enjoyment of all or any portion thereof, or from any lease, sublease, contract of sale or other agreement pertaining thereto, and all right, title and interest of the Grantor in and to, and remedies under, all leases, subleases, contracts of sale or other agreement relating to the Real Property, or any part thereof, both now in existence and hereafter entered into, including, without limitation, all cash or securities deposited thereunder to secure performance by the lessees, sublessees and purchasers of their obligations thereunder, whether, with respect to such leases and subleases, such cash or securities are to be held until the expiration of the terms of such leases or subleases or are to be applied to one or more of the installments of rent coming due immediately prior to the expiration of such terms; reserving in the Grantor a license to collect and receive the same until there is a default under any of the Loan Documents.

 

TO HAVE AND TO HOLD the Property unto the Trustees, the survivors or survivor of them, and their or his successors or successor in the trust, in fee simple.

 

IN TRUST to secure to the Lender and to the Trustees for the benefit of the Lender the payment of the Obligations and the performance of all other terms and conditions of this Deed of Trust and the other Loan Documents secured hereby.

 

PROVIDED, HOWEVER, that (a) until the occurrence of an event of default hereunder, the Grantor may retain possession of the Real Property and collect, receive and retain the rents, revenues, proceeds and income therefrom, and (b) if the Grantor shall pay the Obligations in accordance with the terms of the Loan Documents and shall perform all of the terms, conditions and provisions of the Loan Documents, then this Deed of Trust shall be void, and upon proof given to the satisfaction of the Trustees that the Obligations have been satisfied in full, the Trustees shall (at the expense of the Grantor) release and discharge the lien and terminate the security interest of this Deed of Trust of record upon payment of a reasonable fee for the release and reconveyance of the Real Property or any partial release and reconveyance thereof.

 

  

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AND THIS DEED OF TRUST FURTHER WITNESSETH that the Grantor Gointly and severally, if more than one) hereby represents, warrants, covenants and agrees for the benefit of the Lender and the Trustees as follows:

 

ARTICLE I. REPRESENTATIONS AND WARRANTIES.

 

The Grantor Gointly and severally, if more than one) makes the following representations and warranties to the Lender:

 

      Section 1.01. The Grantor has the power, authority and legal right to own the Property, to carry on the business of the Grantor as now conducted and to engage in the transaction contemplated by the Loan Documents.

 

     Section 1.02. The execution and delivery of, and the carrying out of the transaction contemplated by the Loan Documents, and the performance and observance of the terms, covenants, agreements and provisions of the Loan Documents have been duly authorized by all necessary action of the Grantor and will not conflict with or result in a breach of the terms or provisions of any existing law, rule, regulation or order of any court or governmental body.

 

     Section 1.03. The Loan Documents constitute the valid and legally binding obligations of the Grantor and are fully enforceable against the Grantor in accordance with their respective terms.

 

     Section 1.04. The Grantor is the owner of the fee simple legal title to and is lawfully seized and possessed of the Property. The Grantor has the right and authority to convey the Property with General Warranty and English covenants of title and does hereby warrant specially, and agrees to defend, the Property and the title thereto, whether now owned or hereafter acquired, against all claims and demands of the Grantor and every person claiming or to claim by, through or under the Grantor.

 

     Section 1.05. The loan evidenced and secured by the Loan Documents is being made to the Grantor solely for business or investment purposes within the meaning of'6.1-330.75 of the Code of Virginia of 1950, as amended. The Grantor further represents and warrants that it is not a natural person and the obligations evidenced by the Loan Documents were not incurred for personal, family or household purposes.

 

     Section 1.06. To the best of the Grantor's knowledge, the Real Property (including the land, surface water, ground water, and improvements) is free of any substantial amounts of waste or debris and is free of all contamination including: (a) any "hazardous waste" as defined by the Resource Conservation and Recovery Act of 1976, as amended from time to time, and regulations promulgated thereunder; (b) any "hazardous substance" as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. '9601 et. seq.), as amended from time to time, and regulations promulgated thereunder; (c) any "regulated substance" as defined by the Code of Virginia of 1950, as amended, '62.1-44.34:8, and regulations promulgated thereunder; (d) any "hazardous substance" as defined by the Virginia Waste Management Act, Code of Virginia of 1950, as amended '10.1-1400, et. seq., and regulations promulgated thereunder; (e) any substance the presence of which on the Real Property is prohibited by any law similar to those set forth in this Section; and (f) any materials which, under federal, state, or local law, statute, ordinance or regulations; or court or administrative order or decree; or private agreement (hereinafter referred to collectively as "Environmental Requirements"), require special handling in collection, storage, treatment or disposal (items (a) - (f) are hereinafter referred to collectively as "Hazardous Materials").

 

  

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ARTICLE II. COVENANTS AND AGREEMENTS.

 

The Grantor (jointly and severally, if more than one) hereby covenants for the benefit of the Lender and the Trustees as follows:

 

     Section 2.01. The Grantor agrees to promptly pay the Obligations when and as due and payable in accordance with the terms, conditions and provisions of the Note and each of the other Loan Documents and to punctually keep, perform, observe and comply with the terms, conditions and provisions of any and all of the Loan Documents to be kept, performed, observed and complied with by the Grantor. At any time, and from time to time, upon request by the Lender, the Grantor, at the sole expense of the Grantor, shall make, execute, deliver and record or cause to be made, executed, delivered and recorded, any and all further instruments, certificates, and other documents as may, in the opinion of the Lender, be necessary or desirable in order to effectuate, complete, or perfect or to continue and preserve the obligations of the Grantor under the Note and the lien of this Deed of Trust, and all modifications, extensions and other amendments of the same.

 

     Section 2.02. The Grantor agrees to, at the Grantor's sole expense, to keep the Property in good condition, working order and repair and to make all necessary or appropriate repairs, replacements and renewals thereof and additions thereto so that the Property shall at all times be in good condition and fit and proper for the purposes for which the Property was originally intended. The Grantor shall not remove, demolish or materially alter all or any part of the Property without the prior written consent of the Lender.

 

     Section 2.03. The Grantor agrees to permit representatives of the Lender to inspect the Property at all reasonable times as often as may be requested by the Lender.

 

     Section 2.04. The Grantor agrees to keep the Property free from all liens, security interests, encumbrances and claims of every kind and nature other than the lien of this Deed of Trust and those encumbrances permitted in writing by the Lender. The Grantor shall give the Lender notice of any default in any such permitted lien, security interest, claim or encumbrance and notice of any foreclosure or threat of foreclosure of the same.

 

     Section 2.05. The Grantor shall comply with and not violate or cause to be complied with and not violated any laws, rules, regulations or ordinances applicable to the Property or to any use thereof.

 

     Section 2.06. The Grantor agrees to collect and apply to the unpaid Obligations as the Lender may direct any Condemnation Awards pertaining to all or any part of the Property.

 

     Section 2.07. The Grantor shall keep the Property fully insured with a responsible insurance company for the benefit of the Lender against loss by fire, smoke, flood, explosion and other hazards and casualties insured against by persons operating like properties in the general locality of the Property and in such amounts as from time to time maybe required by the Lender (but in any event sufficient to avoid any co-insurance obligations) and/or by applicable law or regulation. If requested by the Lender, the Grantor shall also maintain or cause to be maintained public liability and property damage insurance, business interruption and/or loss of "rental value" insurance and/or such other insurance as may reasonably be required by the Lender, all in form, content, amount and insurer satisfactory to the Lender. The Grantor shall promptly pay when due any and all premiums on such insurance and, not less than 10 days prior to the expiration dates of each such policy, shall deliver to the Lender a renewal policy or policies marked "premium paid" or accompanied by other evidence of payment satisfactory to the Lender. The policies of such insurance and all renewals thereof are hereby assigned to, and shall be deposited with and held by, the Lender, and as collateral and further security for the Obligations have attached thereto standard mortgagee clauses in favor of and entitling the Lender, without contribution, to collect any and all proceeds payable under such insurance as the Grantor's interest may appear, all to be in form acceptable to the Lender. The Grantor hereby authorizes the Lender, at its option, to collect, adjust and compromise any losses or claims under any of such insurance, and after deducting costs and expenses of collection (including, without limitation, reasonable attorney's fees and expenses) to apply all or part of the proceeds collected (if any) at the discretion of the Lender as follows: (a) as a credit upon any portion, as selected by the Lender, of the Obligations, or (b) to repairing, replacing or restoring the Property, in which event the Lender shall not be obligated to see to the proper application thereof, nor shall the amount so released or used be deemed a payment on any of the Obligations. The Grantor will immediately notify the Lender of any cancellation of or change in any insurance policy, and each such policy shall contain the agreement of the insurer that such policy will not be modified or canceled without 30 days prior written notice to the Lender. At the request of the Lender, in addition to and together with the monthly payments under the terms of the Note, the Grantor shall pay to the Lender an amount which shall be estimated by the Lender in its sole discretion from time to time to be sufficient to enable the Lender to pay (out of the moneys so paid to the Lender) all premiums for such insurance.

 

  

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     Section 2.08. The Grantor agrees to promptly pay as and when due and payable all costs and expenses, including recordation and transfer taxes, which are or maybe levied, imposed or assessed upon the Property, or any part thereof, or for which the Trustees, the Lender or the Grantor may at any time be liable in connection with or as a result of the recording, maturity, collection or enforcement of any or all of the Obligations, or any of the Loan Documents.

 

     Section 2.09. The Grantor shall promptly pay in full and discharge before delinquency and before any penalty for non-payment attaches thereto, all taxes, water rents, sewer rents, ground rents, assessments, utility charges (whether public or private), and other governmental, municipal or public or private dues, charges and levies (all of which are hereinafter collectively referred to as the "Taxes") and any prior liens (including federal tax liens) for such Taxes which are or may be levied, imposed or assessed upon the Property or any part thereof. At the request of the Lender, in addition to and together with any monthly payments due under the terms of the Note, the Grantor shall pay to the Lender an amount which shall be estimated by the Lender in its sole discretion from time to time to be sufficient to enable the Lender to pay (out of the moneys so paid to the Lender) at least 30 days before due, all Taxes, which sums shall be held by the Lender in a non-interest bearing account to pay the Taxes. If the Lender has not accumulated sufficient funds under the terms hereof with which to pay the Taxes when and as the same are due and payable, the Grantor shall pay on demand the amount of any such deficiency.

 

     Section 2.10. The Grantor shall furnish to the Lender, within 90 days after the end of each calendar year or fiscal year, as the case may be, financial statements of the Grantor prepared in accordance with generally accepted accounting principles, consistently applied, and certified by the Grantor. The Grantor shall provide, upon the Lender's request, convenient facilities for the audit and verification of any such statements. At the same time, the Grantor will furnish or cause to be furnished to the Lender financial statements, prepared as aforesaid, for each guarantor of the Note.

 

                Section 2.11. The Lender shall have the right to approve all leases of the Property or any part thereof which the Grantor may execute after the date of this Deed of Trust as to form, content and financial strength of the tenant. At any time within 30 days after notice and demand by the Lender, the Grantor will deliver to the Lender a written statement in such reasonable detail as the Lender may request, certified by the Grantor, of all of the leases and subleases (of which it has knowledge) relating to the Property or any part thereof, including the names of all lessees and sublessees (of which it has knowledge), the terms of all leases and the rental payable thereunder, and, on demand, the Grantor will furnish to the Lender executed counterparts of any such leases. The Grantor shall perform, comply with and carry out all of the Grantor's covenants and agreements as lessor or landlord contained in any existing or future lease or leases of the Property or any part thereof; the rentals from any and all of which are hereby assigned by the Grantor to the Trustees subject to a license to the Grantor to collect and receive the same until the occurrence of an event of default under any of the Loan Documents, as hereinabove provided. The Grantor will not, without the prior written consent of the Lender cancel, terminate, accept a surrender of, reduce the payment of rent under, or accept any prepayment of rent (other than is customary) of, any present or future lease of the Property or any part thereof.

 

     Section 2.12. Without the prior written consent of the Lender, the Grantor will not initiate, join in, or consent to any change in, any restrictive covenant, easement, zoning ordinance, or other public or private restriction, limiting or defining the uses which may be made of the Property. The Grantor will (a) promptly perform and observe, and cause to be performed and observed, all of the terms and conditions of all agreements affecting the Property, and (b) do or cause to be done all things necessary to preserve intact and unimpaired any and all easements, appurtenances and other interests and rights in favor of, or constituting any portion of, the Property.

 

  

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     Section 2.13. The Grantor shall not place or permit to be placed any Hazardous Materials on the Property. Upon the request of the Lender, the Grantor shall provide the Lender from time to time (at the Grantor's expense) with a current environmental assessment (to as high a level as the Lender reasonably determines is advisable) of the Property within a reasonable time after such request. Such assessment shall be in a form satisfactory to the Lender and from an environmental engineer or consultant satisfactory to the Lender. Prior to the occurrence of any default or Event of Default that remains uncured after any applicable cure period, the Lender shall be limited to one such assessment process per year at the Grantor's expense (though it may procure additional assessments at its own expense). If, at any time, it is determined that there are Hazardous Materials located on the Property which, under any Environmental Requirement require special handling in collection, storage, treatment or disposal, the Grantor shall, within thirty (30) days after written notice thereof, take or cause to be taken, at its sole expense, such actions as may be necessary to comply with all Environmental Requirements. If the Grantor shall fail to take such action, the Lender may make advances or payments towards performance or satisfaction of the same but shall be under no obligation so to do; and all sums so advanced or paid, including all sums advanced or paid in connection with any judicial or administrative investigation or proceeding relating thereto, including, without limitation, reasonable attorneys' fees, fines or other penalty payments, shall be paid by the Grantor to the Lender as provided in Section 2.14 hereof. The Grantor hereby agrees to indemnify and hold the Lender harmless from and against any claim which may now or hereafter be asserted against the Lender as a result of the presence of any Hazardous Materials on the Property and from and against all losses, expenses and charges whatsoever, including reasonable attorneys' fees resulting therefrom.

 

     Section 2.14. If the Grantor fails to perform, comply with or observe any of the foregoing covenants, the Lender or the Trustees may, but shall not be obligated to, perform, comply with or observe the same on behalf of the Grantor. All moneys advanced and costs and expenses incurred by the Lender or the Trustees (as the case may be) in so doing (collectively, the "Expense Payments"), together with interest thereon at a per annum rate of interest which is equal to the rate of  interest charged on the principal of the Note plus 2% per annum from the date of payment until repaid in full, shall be paid to the Lender or to the Trustees (as the case may be) by the Grantor on demand and shall be secured by this Deed of Trust.

 

     Section 2.15. This Deed of Trust creates a security interest in the Property, and, to the extent any portion of the Property is not real property, this Deed of Trust constitutes a security agreement from the Grantor to the Lender under the Uniform Commercial Code of the jurisdiction in which the Real Property is located in such portion of the Property and the proceeds (cash and noncash) thereof. With respect to such portion of the Property, the Lender shall have all the rights and remedies of a secured party under the aforesaid Uniform Commercial Code.

 

  

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ARTICLE III. EVENTS OF DEFAULT.

 

The occurrence of anyone or more of the following events shall constitute a default or event of default under this Deed of Trust:

 

     Section 3.01. The failure of the Grantor to pay any or all of the Obligations as and when due and payable.

 

     Section 3.02. The failure of the Grantor to perform, observe or comply with any of the terms, conditions and provisions of this Deed of Trust or any of the other Loan Documents (other than those described in Section 3.01 hereof).

 

     Section 3.03. The occurrence of a default (as described or defined therein) under any of the Loan Documents.

 

     Section 3.04. The transfer or conveyance to any person of all or any part of the Property (or any legal or beneficial interest therein) without the prior written consent of the Lender. NOTICE - THE INDEBTEDNESS SECURED HEREBY IS SUBJECT TO CALL IN FULL OR THE TERMS THEREOF MODIFIED IN THE EVENT OF THE SALE OR CONVEYANCE OF THE PROPERTY HEREBY CONVEYED.

 

     Section 3.05. The occurrence of a default (as described or defined therein) under any other indebtedness or liability for borrowed money of the Grantor (other than the Obligations) if the effect of such default is to accelerate the maturity of such evidence of indebtedness or liability or to permit the holder thereof to cause any indebtedness to become due prior to its stated maturity.

 

     Section 3.06. Any execution or attachment shall be levied against the Property, or any part thereof, and such execution or attachment shall not be set aside, discharged or stayed within 30 days after the same shall have been levied.

 

     Section 3.07. The entry of a final judgment for the payment of money involving more than $10,000 against the Grantor and the failure of the Grantor to discharge the same, or cause it to be discharged, within 60 days from the date of the order, decree or process under which or pursuant to which such judgment was entered, or to secure a stay of execution pending appeal of such judgment.

 

     Section 3.08. An event of default (as defined therein) should exist or occur under any other mortgage, deed of trust or other instrument encumbering all or any portion of the Property regardless of whether or not the creation of such mortgage, deed of trust or other encumbrance has been previously consented to by the Lender.

 

     Section 3.09. If any information contained in any financial statement, application, schedule, report or any other document given by the Grantor or by any other person in connection with the Obligations or with any of the Loan Documents is not in all respects true and accurate, or if the Grantor or such other person omitted to state any material fact or any fact necessary to make such information not misleading.

 

     Section 3.10. The filing of any petition for relief under the Bankruptcy Code or any similar Federal or State statute by or against the Grantor and, in the event of such a filing against the Grantor by a third party, the failure of the Grantor to have such petition dismissed within 60 days from the date of filing.

 

  

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     Section 3.11. An application for the appointment of a receiver for the Grantor filed by or against the Grantor and, in the event of such an application against the Grantor by a third party, the failure of the Grantor to have such application dismissed within 60 days from the date of filing.

 

     Section 3.12. The making of a general assignment for the benefit of creditors by the Grantor or the insolvency of the Grantor.

 

     Section 3.13. The dissolution, merger, consolidation or reorganization of the Grantor.

 

     Section 3.14. Without the prior written consent of the Lender, any interest in the Grantor shall be (directly or indirectly) sold, assigned, transferred, encumbered or otherwise conveyed.

 

     Section 3.15. The death of the Grantor.

 

ARTICLE IV. REMEDIES.

 

     Section 4.01. Upon the occurrence of a default under this Deed of Trust, the entire unpaid balance of the Obligations shall become immediately due and payable at the option of the Lender and in such event the Grantor does hereby (a) authorize the Trustees to sell the Property or any part thereof and (b) declare its assent to the passage of a decree by a court of proper jurisdiction for the sale of the Property, subject to any lease of all or any part of the Property which the Trustees or the Lender elect and so advertise. In case of any sale under this Deed of Trust, by virtue of judicial proceedings or otherwise, the Property or any part thereof may be sold upon such terms and conditions, in such parcels at such time and place as the Trustees shall deem advantageous and proper and as required by applicable laws and rules, without regard to any right of the Grantor or any other person to the marshalling of assets. The Trustees, if and as directed by the Lender, shall have all of the rights and may exercise all of the powers set forth in Sections 55-59 to 55-59.4, inclusive, of the Code of Virginia of 1950, as amended, as in effect on the date of execution of this Deed of Trust, except that any advertisement required in connection with the sale of the Property shall be once a week for two successive weeks. In connection with any foreclosure, the Trustees may procure such title reports, surveys, tax histories and appraisals as they deem necessary, and all costs and expenses incurred in connection therewith shall be paid on demand to the Trustees by the Grantor or from the proceeds of sale. Upon the terms of such sale being complied with, the Trustees shall convey the Property so sold to and at the cost of the purchaser or purchasers thereof. The Trustees shall receive and apply the proceeds from the sale of the Property, or any portion thereof, in accordance with Section 55-59.4 (A) (3) of the Code of Virginia of 1950, as amended, or any successor provision of law.

 

     Section 4.02. Immediately upon the first insertion of any advertisement or notice of sale, there shall also be and become due and owing by the Grantor all expenses incident to any such foreclosure proceedings under this Deed of Trust and a commission on the total amount of the Obligations then due equal to one-half of the percentage allowed as the Trustees' commission upon sale of the Property pursuant to law. Neither the Trustees, the Lender nor any other person shall be required to accept a tender of the unpaid balance of the Obligations and any other indebtedness then secured hereby with interest thereon to the date of payment unless the same is accompanied by a tender of all Expense Payments, and any other costs, expenses, taxes and commissions then due, paid or incurred together with interest thereon at a per annum rate of interest equal to the rate of interest charged on the principal of the Note, plus 2% per annum from the date due, paid or incurred to the date of payment.

 

  

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     Section 4.03. As a matter of right and to the extent permitted by law, without notice to the Grantor, and without regard to the adequacy of the security, upon application to a court of competent jurisdiction the Lender shall be entitled to the immediate appointment of a receiver for all or any part of the Property, and of the rents, income, profits, issues and proceeds thereof and therefrom, whether such receivership be incidental to a proposed sale of the Property or otherwise, and the Grantor hereby consents to the appointment of such a receiver. The Grantor will pay to the Lender, upon demand, all expenses, including receiver's fees, attorney's fees and costs, advanced by the Lender and incurred pursuant to the provisions of this Deed of Trust, and all such expenses shall be (a) a lien against the Property, (b) added to the indebtedness secured by this Deed of Trust, and (c) payable on demand with interest at a rate 2% per annum in excess of the interest rate provided in the Note from and including the date each such advance is made.

 

     Section 4.04. Each right, power and remedy of the Lender or the Trustees provided for in this Deed of Trust or in any of the other Loan Documents; shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for in this Deed of Trust, any of the other Loan Documents or at law or in equity. The exercise or beginning of the exercise by the Lender or the Trustees of anyone or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by the Lender or the Trustees of any or all such other rights, powers or

 

     Section 4.05. No failure or delay by the Lender or the Trustees to insist upon the strict performance of any term, condition, covenant or agreement of this Deed of Trust or of any of the other Loan Documents, or to exercise any right, power or remedy permitted hereunder or thereunder, shall constitute a waiver of any such term, condition, covenant or agreement or of any such breach, or preclude the Lender or the Trustees from exercising any such right, power or remedy at any later time or times. By accepting payment after the due date of any amount payable under this Deed of Trust or under any of the other Loan Documents, the Lender or the Trustees shall not be deemed to waive the right either to require prompt payment when due of all other amounts payable under this Deed of Trust or under any of the other Loan Documents, or to declare a default for failure to effect such prompt payment of any such other amount.

 

ARTICLE V. MISCELLANEOUS.

 

     Section 5.01. The Lender shall have the irrevocable power to remove or substitute trustees at any time and from time to time and the powers and duties of the Trustees maybe executed by either of them with the same legal force and effect as though executed by both of them, including, without limitation, the right and power on the part of either Trustee to execute and deliver a full or partial release of this Deed of Trust or all or any part of the Property covered hereby.

 

     Section 5.02. The Trustees shall not be liable for any error of judgment, nor for any act done or step taken or omitted, nor for any mistakes of law or fact, nor for anything which the Trustees may do or refrain from doing in good faith, nor generally shall the Trustees have any accountability hereunder except for willful misconduct or gross negligence.

 

     Section 5.03. All notices, demands, requests, consents or approvals required under this Deed of Trust to be in writing, shall be deemed to have been properly given if and when mailed by first class certified mail, return receipt requested, postage prepaid, if to the Lender at 229 Midsummer Cir., Gaithersburg, MD 20878, and if to the Grantor at 600 Cameron Street, Alexandria, VA 22314 and if to the Trustees at C/O CHARTER HOUSE, LLC, 8120 Woodmont Ave., Suite 350, Bethesda, MD 20814 or at such other address as the Grantor, the Lender or the Trustees shall have furnished to the others in writing, mailed as aforesaid.

 

 

  

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     Section 5.04. This Deed of Trust may not be modified or amended except by an agreement in writing, signed by the party against whom enforcement of the change is sought.

 

     Section 5.05. If fulfillment of any provision hereof or any transaction related hereto or to the Note, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law, then ipso facto , the obligation to be fulfilled shall be reduced to the limit of such validity; and if any clause or provision herein contained, other than the provisions requiring the Grantor to pay the Obligations, operates or would prospectively operate to invalidate this Deed of Trust in whole or in part, then such clause or provision only shall be void, as though not herein contained, and the remainder of this Deed of Trust shall remain operative and in full force and effect; and if such clause or provision requires the Grantor to pay the Obligations or any other of the  indebtedness secured by this Deed of Trust, then at the option of the Lender, the entire unpaid amount of the Obligations, with all unpaid interest accrued thereon and all other unpaid indebtedness secured by this Deed of Trust shall become due and payable.

 

     Section 5.06. This Deed of Trust shall be binding upon the Grantor and the Grantor's heirs, personal representatives, successors and assigns and shall inure to the benefit of the Lender, the Trustees and their respective successors and assigns. As used herein, the singular number shall include the plural, the plural the singular and the use of the masculine, feminine or neuter gender shall include all genders, as the context may require, and the term "person" shall include an individual, a corporation, an association, a partnership, a trust and an organization.

 

     Section 5.07. This Deed of Trust is being executed and delivered in the Commonwealth of Virginia and shall be construed, governed and enforced in accordance with the laws in effect from time to time in the Commonwealth of Virginia.

 

     Section 5.08. This Deed of Trust shall be construed to incorporate by short form references below the following provisions of Sections 55-60 of the Code of Virginia of 1950, as amended:

 

Exemptions Waived.

 

Subject to call upon default.

 

Renewal, extension or reinstatement permitted.

 

Deferred purchase money.

 

Substitution of Trustee permitted.

 

Any Trustee may act.

 

 

Signatures appears on following page.

 

  

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IN WITNESS WHEREOF, the Grantor has caused this Deed of Trust to be executed under seal as of the day and year first written above.

 

	
WITNESS OR ATTEST:

	  	
BORROWER:

	 	 	 
	  	  	
SEAWRIGHT SPRINGS, LLC

	 	 	 
	  	  	
By: Seawright Holdings, Inc., Sole Member and Manager

	 	 	 
	
(illegible)

	  	
By: /s/ Joel P. Sens (SEAL)

	 	 	 
	  	  	
Joel P. Sens, President

	 	 	 
	  	  	
SEAWRIGHT HOLDINGS, INC.

	 	 	 
	
(illegible)

	  	
By: /s/ Joel P. Sens (SEAL)

	 	 	 
	  	  	
Joel P. Sens, President

 

STATE OF MARYLAND,

 

COUNTYOF MONTGOMERY TO WIT:

 

On this 14 day of April 2008 before me, a Notary Public of said State, personally appeared Joel P. Sens, who acknowledged himself to be the President of Seawright Holdings, Inc., acting as the Sole Member and Manager of SEAWRIGHT SPRINGS, LLC, and that he, as such President, being authorized to do so, in my presence, signed and sealed the foregoing Deed of Trust and acknowledged that he executed the same in his capacity as President of Seawright Holdings, Inc., acting as the Sole Member and Manager of SEAWRIGHT SPRINGS, LLC for the purposes herein contained.

 

WITNESS my hand and Notarial Seal.

 

/s/ (illegible)

 

Notary Public

 

My Commission Expires: _______________

 

 

 

SECOND NOTARY APPEARS ON FOLLOWING PAGE

 

  

11

  

 

STATE OF MARYLAND,

 

COUNTYOF MONTGOMERY TO WIT:

 

On this14 day of April 2008 before me a Notary Public of said State, personally appeared Joel P. Sens who acknowledged himself to be the President of SEAWRIGHT HOLDINGS INC. and that he, as such President, being authorized to do so, in my presence, signed and sealed the foregoing Deed of Trust and acknowledged that he executed the same in his capacity as President of Seawright Holdings, Inc. for the purposes herein contained.

 

WITNESS my hand and Notarial Seal.

 

/s/ (illegible)

 

Notary Public

 

 

My commission Expires: _________________

 

 

  

12

  

EXHIBIT A

 

 

 

PROPERTY DESCRIPTION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13Unassociated Document

Exhibit 10.7

Prepared Out of State by:

Charles E. Kohlhoss

8120 Woodmont Ave. Suite 350

Bethesda, MD 20814

Tax Map No. 26-94

Tax Map No. 26-94A

Tax Map No. 27-2

Tax Map No. 27-2B

Tax Map No. 27-8A

FORBEARANCE AGREEMENT

 

THIS FORBEARANCE AGREEMENT (hereinafter referred to as the "Agreement") is made effective May 5, 2010 by and between SEAWRIGHT SPRINGS, LLC (hereinafter referred to as the "Borrower"), and PIERRE L. PALIAN, a Maryland resident having an address of 8120 Woodmont Ave., Suite 830, Bethesda, MD 20814 (hereinafter referred to as the "Lender"), who, in consideration of the mutual covenants herein and for Ten Dollars and other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, agree as follows:

 

1.          Introductory Provisions. The Lender is the owner and holder of that certain Deed of Trust Note dated April 14, 2008, which has been executed and delivered by the Borrower to the order of the Lender, in the original principal amount of $375,000.00, which Deed of Trust Note, is hereinafter referred to as the "Note".

 

 The Borrower's obligations under the Note are secured by, among other things, that certain Deed of Trust and Security Agreement dated April 14, 2008 made by Borrower to PALMA COLLINS, Trustee and recorded as Instrument No. 08004398 among the Land Records for Augusta County, covering certain real property and improvements thereon, more particularly described on "EXHIBIT A" attached thereto and made a part hereof, which Deed of Trust and Security Agreement, as modified and increased from time to time, is hereinafter referred to as the "Deed of Trust" .

 

 All liens, security interests, assignments, superior titles, rights, remedies, powers, equities and priorities securing the Note or providing recourse to Lender with respect thereto are hereinafter collectively called the "Liens". The land encumbered by the Deed of Trust and the improvements, now existing or hereafter constructed, and fixtures thereon and appurtenances thereto are hereinafter collectively called the "Property".

 

The Borrower's obligations under the Note and the Deed of Trust, and all renewals, extensions, amendments, supplements and restatements thereof, are hereinafter collectively called the "Obligations". The Note, the Deed of Trust and any other document now or hereafter executed and delivered in connection with the obligations or any part thereof, as such documents or any of them may be renewed, extended, amended, supplemented or restated from time to time, are hereinafter collectively called the "Loan Documents". Terms defined in the Loan Documents and not redefined in this Agreement shall have the same meanings in this Agreement as assigned in the Loan Documents.

 

  

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The Borrower and the Lender now agree to confirm the amount of the indebtedness outstanding under the Note, to ratify the Liens as to all other collateral and confirm that the Liens continue to secure the Obligations, all as set forth in the following provisions of this Agreement (which shall prevail over any conflicting or inconsistent provisions in this section).

 

2.          Principal Balance. On or about July 8, 2008 Borrower paid off all outstanding interest, fees and charges then due and outstanding under the note and has made no further payments since that time. Simultaneous with the execution here of Borrower shall pay $140,225.25 toward the balance of all penalties, fees, costs and interest due and outstanding under the Loan Documents which will bring the resulting balance of said charges to the sum of $24,774.75 (which sum is hereinafter referred to as the "Deferred Interest"). As of the date hereof, after credit for said payment, the outstanding principal balance of the Note remains $375,000.00 (excluding the "Deferred Interest"). The outstanding balance of the Note including Deferred Interest and principal is $399,774.75 as of the date hereof Borrower hereby unconditionally and irrevocably acknowledges and confirms said principal balance and waives and quitclaims all claims and challenges at law and in equity as to all payments made through and including the date hereof to the Lender, its attorneys and agents, whether for interest, late fees, extension fees, forbearance fees, attorneys fees, closing costs, expenses or otherwise, including, without limitation all interest, fees, expenses and other charges paid or to be paid on the settlement sheet(s) of even date herewith prepared by Rhea & Miller, P.C. in connection with the closing of the transaction evidenced hereby.

 

3.          Forbearance/Maturity. The Note matured on October 10, 2008. In exchange for the Forbearance Fee and in consideration of the covenants and agreements made by Borrower herein, the Lender shall refrain from pursuing any remedies against the Borrower on account of said maturity until December 31, 2010. In the event the Borrower defaults in any of its obligations under the Loan Documents as modified hereby and such default continues beyond any applicable cure period the Lender's obligation to forbear shall terminate and the Lender shall be entitled to pursue any and all remedies available at law and in equity. Lender's obligation to forbear shall terminate upon the occurrence of an Event of Default under any of the Loan Documents.

 

4.          Forbearance Fee - Interest - Payments. On the date hereof Borrower shall pay to Lender a Forbearance Fee in the amount of $7,500.00, which fee is earned due and nonrefundable as of the date hereof and is separate and apart from the interest or other charges payable hereunder. Any other term or provision in the Loan Documents to the contrary notwithstanding, all amounts due and owing under the Note from time to time (including Deferred Interest) shall accrue interest at the rate of twenty-one percent (21 %) per annum from the date hereof until paid in full. Borrower shall prepay to the Lender interest in the amount of $48,972.41 for interest that is expected to accrue between the date hereof and December 31, 2010. In the event all amounts due and owing hereunder are paid prior to December 31, 2010 Borrower shall receive a credit or refund of any unearned pre-paid interest. Provided Borrower does not breach any of the covenants terms or conditions of the Loan Documents as modified hereby, Borrower shall not be obligated to make any payment towards principal or interest on the Note until December 31, 2010 when the outstanding balance of all amounts due and payable under the Loan Documents shall be paid in full without any further notice or demand.

 

  

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5.          Default Interest. Upon the occurrence of an Event of Default, all amounts due and owing under the Note from time to time (including Deferred Interest) shall accrue interest at the rate of twenty-four percent (24%) per annum from the date hereof until paid in full..

 

6.          Late Payrnent. If the Borrower shall fail to make payment in full of all amounts due and owing under the Loan Documents on or before December 31, 2010, the Borrower promises to pay to the Lender a late charge equal to ten percent (10%) of such payment. The "late charge" is imposed for Lender's the purpose of defraying the expenses of the Lender incident to handling such delinquent payment and offsetting other obligations. This charge shall be in addition to, and not in lieu of, any other remedy the Lender may have and is in addition to any fees and charges of any agents or attorneys which the Lender may employ upon any Event of Default hereunder, whether authorized herein or by law.

 

7.          Title Insurance; Lien Searches. At the time of execution of this Agreement, Borrower shall cause to be issued to Lender, at Borrower's sole cost and expense, such endorsements of any title policy previously issued to insure the lien of the Deed of Trust as Lender may request and are available for issuance under the current applicable title insurance rules and regulations. Simultaneously with the execution and delivery of this Agreement, Lender shall be provided with a title bring down with respect to the Property showing that the Property is free of liens, charges and other encumbrances other than those shown on the title insurance policy previously issued in connection with the Note. In addition, if requested by Lender, judgment and lien searches, showing no judgments or other liens filed against the Borrower shall be delivered to the Lender.

 

8.          Borrower's Representations and Warranties. Borrower hereby represents and warrants that (a) Borrower is the sole legal and beneficial owner of the Property; (b) the execution and delivery of this Agreement do not contravene, result win a breach of, or constitute a default under, any deed of trust, loan agreement, indenture or other contract or agreement to which Borrower is a party or by which Borrower or any of its properties may be bound (nor would such execution and delivery constitute such a default with the passage of time or the giving of notice or both) and do not violate or contravene any law, order, decree, rule, regulation or restriction to which Borrower or the Property is subject; (c) Borrower has full power and authority to execute this Agreement; (d) this Agreement constitutes the legal, valid and binding obligations of Borrower enforceable in accordance with its terms; (e) the execution and delivery of, and performance under, this Agreement are within Borrower's power and authority without the joinder or consent of any other party, and do not violate any indenture, agreement or undertaking to which Borrower is a party or by which he is bound; (f) to the best of Borrower's knowledge, there exists no default under the Note or any other Loan Document, and (g) all of the debt evidenced by the Note is and shall be for business, commercial, investment or other similar purpose and not primarily for personal, family, household or agricultural use. Borrower agrees to indemnify and hold Lender harmless against any loss, (claim, damage, liability or expense (including, without limitation, attorneys' fees) incurred as a result of any representation or warranty made by Borrower herein which proves to be untrue or inaccurate in any respect.

 

  

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9.          Further Assurances. Borrower agrees to execute and deliver to Lender, promptly upon request from Lender, such additional documents as may be necessary or appropriate to consummate the transactions contemplated herein or to perfect, or continue the perfection of, the Liens.

 

10.        Default Under Deed of Trust. If Borrower shall fail to keep or perform any of the covenants or agreements contained herein or in any of the Loan Documents, or if any statement, representation or warranty contained herein is false, misleading or erroneous in any material respect, Borrower shall be deemed to be in default under the Deed of Trust and Lender shall be entitled at its option to exercise any and all of the rights and remedies granted pursuant to the Deed of Trust, as amended hereby, or any other Loan Document, or to which Lender may otherwise be entitled, whether at law or in equity.

 

11.        Reaffirmation; Lien Continuation; No Novation. Borrower hereby reaffirms the Note and the other Obligations and promises to pay and perform the Note and all Obligations as modified by this Agreement. The Liens are hereby ratified and confirmed as valid, subsisting and continuing to secure the Note and the Obligations, as modified hereby. The Liens are further ratified and confirmed as to all of the property described on Exhibit A attached hereto. Any former release of any such property is hereby declared null and void. Any failure to describe any such property in any of the Loan Documents is hereby reformed and corrected to include all of the property described on Exhibit A hereto as though such description was originally included in such document. Nothing herein shall in any manner diminish, impair or extinguish the Note, the Obligations or the Liens. The Liens are not waived. The execution and delivery of this Agreement shall not constitute a novation of the debt evidenced and secured by the Loan Documents. Borrower ratifies and acknowledges the Loan Documents as valid, subsisting and enforceable and agrees and warrants that there are no offsets, claims or defenses with respect to the Obligations.

 

 

  

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12.        No Waiver by Lender. Borrower acknowledges and agrees that the execution of this Agreement by Lender is not intended nor shall it be construed as (a) an actual or implied waiver of any, default under the Note, the Deed of Trust or any other Loan Document, or (b) an actual or implied waiver of any condition or obligation imposed upon Borrower pursuant to the Note, the Deed of Trust or any other Loan Document, except to the extent, if any, specified herein.

 

13.        Borrower's Performance. If Borrower should fail to comply with any of the agreements, covenants or obligations of Borrower under this Agreement or any other Loan Document, then Lender (in Borrower's name or in its own name) may, but is under no obligation to, perform them or cause them to be performed for the account of the Borrower at Borrower's sole expense. Any and all expenses thus incurred or paid by Lender shall be Borrower's demand obligations to Lender and shall bear interest, from the date of Lender's payment of any such obligation or expense for Borrower's account until the date on which Borrower repays it to Lender, at the default rate of interest set forth herein. Upon making any such payment or incurring any such expense, Lender shall be fully subrogated to all of the rights of the person or entity receiving such payment. Any amounts owing by Borrower to Lender pursuant to this provision or any other provision of this Agreement shall automatically and without notice constitute a portion of the Obligations evidenced by the Note secured by the Deed of Trust and the other Loan Documents. The amount and nature of any such expense and the time when paid shall be fully established by the affidavit of Lender or any of the Lender's officers or agents.

 

14.        Professional Services. Promptly upon Lender's request, Borrower, at Borrower's sale cost and expense, shall: (a) pay for any appraisal report of the Property; and (b) cause to be conducted or prepared any other written report, summary opinion, inspection, review, survey, audit or other professional service relating to the Property or any operations in connection with it (all as designated in Lender's request) as Lender may reasonably request; including (without limitation) any accounting, auctioneering, architectural, consulting, engineering, design, legal, management, pest control, surveying, title abstracting or other technical, managerial or professional service relating to the Property or its operations. Lender may elect to deliver any such request orally, by telegram, by mail or by hand delivery addressed to Borrower as provided herein or by any other legally effective method, and it may be given at any time and from time to time before the complete and final release and discharge of the Deed of Trust.

 

15.        Expenses. To the extent not prohibited by applicable law, Borrower will pay all costs and expenses and reimburse Lender for any and all expenditures of every character incurred or expended from time to time, regardless of whether a default shall have occurred, in connection with (a) this Agreement; (b) the evaluation, monitoring and protection of the Property pursuant to rights given in the Loan Documents or by law, and (c) the creation, perfection or realization upon the Liens, and all costs and expenses relating to Lender's exercise of any of its rights and remedies under any of the Loan Documents or at law, including, without limitation, all filing fees, taxes, brokerage fees and commissions, title review and abstract fees, recordation and transfer taxes, Uniform Commercial Code search fees, other fees and expenses incident to title searches, reports and security interests, escrow fees, attorneys fees, legal expenses, court costs, fees and expenses incurred in connection with any complete or partial liquidation of the Property, and all fees and expenses for any professional service relating to Property or any operations conducted in connection with it; provided, however, no right or option granted by Borrower to Lender or otherwise arising pursuant to any provision of this Agreement or any other document shall be deemed to impose or admit a duty on Lender to supervise, monitor or protect any aspect of the Property or any operations conducted in connection with it.

 

  

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16.        Cross Defaults/Advances to Cure Defaults or Purchase Carr Note. If any default should occur under the terms of any document executed in connection with any loan to the Borrower from any third party including, without limitation, the loan evidenced by that certain Note ("Carr Note") made by Borrower of even date herewith payable to Kent Carr in the original principal amount of $750,000.00, such default shall constitute an Event of Default under the Loan Documents. Lender has the right but not the obligation to cure any such default and any monies expended or costs incurred by Lender to cure any such default shall be evidenced by the Note and secured by the Deed of Trust and shall accrue interest at the rate of24% per annum. Lender further has the right but not the obligation to purchase the Carr Note and documents securing the Carr Note in the event of a default by the Borrower thereunder or under the terms of the Loan Documents and in such event the interest rate on the Carr Note shall increase to 24% per annum commencing on the date Lender purchases the Carr Note.

 

17.        Additional Events of Default. In addition to the events of default that are described in the Loan Documents, the occurrence or happening of anyone or more of the following events shall constitute an event of default (individually, an "Event of Default" and collectively, the "Events of Defaults") under the terms of the Loan Documents:

 

If the Borrower or Joel P. Sens, guarantees or assumes the debt or financial obligation of another entity or endorses a note or other obligation of another entity unless such guaranty, assumption or endorsement is deemed, in the sale and absolute discretion of the Lender, to be in the normal course of the Borrower's business.

 

If Borrower fails to enter into a valid option contract or contract for the sale of the Borrower's property to CG Roxane or other third party reasonably acceptable to Lender under terms reasonably acceptable to Lender on or before September 30, 2010.

 

If Borrower enters into a valid option contract or contract for the sale of Borrower's property that is reasonably satisfactory to the Lender and said third party purchaser tel111inates its option or contract to purchase the property and Borrower fails to pay off the balance of all sums due under the Note on or before: a) the date which is thirty (30) days after the termination; or b) September 30, 2010, which ever is later.

 

If there is a change in the control or key management of the Borrower or its assets as determined in the sale and absolute discretion of the Lender.

 

  

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16.        Waiver of Automatic Stay. Borrower hereby acknowledges and agrees that the Lender has agreed to enter into this Agreement in order to permit the Borrower additional time to repay and satisfy the obligations in a mutually acceptable, consensual manner, rather than through the Lender's exercise and enforcement of its rights and remedies under the Loan Documents and applicable laws. Borrower further acknowledges and agrees that because of the existing defaults under and in connection with the Obligations, the Lender would otherwise be entitled to exercise immediately any and all such rights and remedies if the Borrower and Lender did not enter into this Agreement. Borrower further acknowledges and agrees that although the Lender's interest in its collateral and security is not presently being adequately protected, the Lender has been induced to enter into this Agreement in reliance upon the understanding that upon the occurrence of any subsequent Event of Default, in the event the Lender hereafter exercises any of its rights or remedies under Loan Documents and/or under any applicable laws, the Borrower will cooperate with the Lender in the Lender's efforts to exercise any and all such rights and remedies available to the Lender. Borrower further acknowledges and agrees that Lender's forbearance, as well as Lender's consent to Borrower's incurring certain additional debt and Borrower's creation of a lien in the Property senior in priority to the Liens was granted by Lender in lieu of relief Borrower intended to seek in a voluntary case under Chapter 11 of title 11, United States Code. Accordingly, Borrower agrees that if Borrower becomes the subject of a any bankruptcy case under title 11, United States Code, the Borrower waives the protection of 11 U.S.C. Section 362, and agrees to consent to relief from the automatic stay in favor of Lender to allow the Lender to exercise any and all rights and remedies available to Lender with respect to its collateral and security.

 

IN WITNESS WHEREOF, the Borrower and the Lender have executed and delivered this Agreement or caused this Agreement to be executed and delivered. This Agreement has been executed on the date or dates of the acknowledgments hereof, but shall be effective as of the dale first stated in this Agreement.

 

SIGNATURES AND NOTARY APPEAR ON FOLLOWING PAGE

 

 

 

 

 

  

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BORROWER:

	 
	 	 	 
	        (SEAL)	

SEAWRIGHT SPRINGS, LLC

	 
	 	 	 	 
	
 

	
By: 

	/s/ Joel P. Sens 	 
	 	 	

Joel P. Sens, Manager

	 
	 	 	 	 
	 	By:	Seawright Holdings, Inc., Sole Member	 
	 	 	 	 
	        (SEAL)	By:	/s/ Joel P. Sens 	 
	 	 	

Joel P. Sens, President

	 

 

STATE OF     Maryland

 

                   ss:

                   

COUNTY OF      Prince George’s

I HEREBY CERTIFY that on this, 4th day of May, 2010, before me, the subscriber, a Notary Public in and for the jurisdiction aforesaid, personally appeared in said jurisdiction Joel P. Sens, personally well known to me (or satisfactorily proven) to be the Manager of Seawright Springs, LLC as well as the President of Seawright Holdings, Inc. which is the sole member of SEAWRIGHT SPRINGS, LLC, and personally well known to me (or satisfactorily proven) to be the person who executed the foregoing instrument; and acknowledged that, having authority so to do, the executed the foregoing instrument as Manager of Seawright Springs, LLC and as President of Seawright Holdings, Inc. acting as sole member of SEAWRIGHT SPRINGS, LLC for the purposes therein contained, and delivered the same as such.

WITNESS my hand and Notarial Seal the year and day first above written.

 

	
 

	
 

	/s/ Irene S. Lefever	 
	 	 	

Notary Public

	 

 

	 	

LENDER:

	 
	 	 	 	 
	
 

	
 

	/s/ Pierre L. Palian 	(SEAL)
	 	 	 
PIERRE L. PALIAN

	 

 

 

  

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EXIBIT A

 

Legal Description

 

All those certain tracts of parcels of real estate, lying and being between State Routes 616 and 804, in North River District, Augusta County, Virginia, and more particularly described according to the attached "Map of the Baker Seawright Corp, Prop." By Robert E. Funk, Land Surveyor, dated January 13 1986, and shown thereon to contain a total of 144.739 acres more or less.

 

Together with all that certain tract or parcel of land, with all improvements thereon and appurtenances thereto belonging, situate in North River District, Augusta County, Virginia, near the Seawright Lithia Spring, adjoining the old Salem Church lot containing 22 poles, and being more particularly described by metes and bounds description of record in deed of Margaret F. Root, dated August 21, 1899 or record in the Clerk's Office of the Circuit Court of Augusta County, Virginia, in Deed Book 400, page 269, as follows:

 

Beginning at a corner of the old Salem Church lot, S. 69° W. 4.64 poles, thence S 20° 34'E. 4 poles to a stone, thence N. 69* E. 6.36 poles to Ocheltree's line; thence N. 43-1/4° W. 4.40 poles to the beginning.

 

Including, without limitation, all of the land and appurtenances conveyed to SEAWRIGHT SPRINGS, LLC by BAKER SEAWRIGHT CORPORATION by that certain deed dated October 7, 2003 and recorded as Instrument No. 030016981 among the Land Records of Augusta County, Virginia.

 

 

 

 

 

 

 

9

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