DEED OF TRUST
THIS DEED OF TRUST is made this 22 day of April 1995, among the
Trustor, BECKWORK, LLC, a Nevada limited liability company ("Borrower"), HYTK
INDUSTRIES INC. ("Trustee"), and the Beneficiary, HYTK INDUSTRIES INC., a
corporation organized and existing under the laws of the State of Nevada, whose
address is 0000 X. Xxxxxx Xx. Xxxxxxx, Xxxxx 000, Xxxxxx, Xxxxxxxx ("Lender").
Borrower, in consideration of the indebtedness herein recited and the
trust herein created, irrevocably grants and conveys to Trustee, in trust, with
power of sale, the following described property located in the County of Xxxxx,
State of Nevada, and more particularly described as follows, to wit:
The SE 1/4 of the SW 1/4 of the SE 1/4 of the SE 1/4 of Section 30,
Township 21 South, Range 61 East, M.D.B.&M. Excepting therefrom the
southerly 50.00 feet thereof, as conveyed to Xxxxx County by deed
recorded October 14, 1981 in Book 1475 as Document Number 1434187. The
north 20.00 feet of the south 50.00 feet was vacated by Order of
Vacation recorded January 17, 1982 in Book 1649, as Document Number
1608332.
which has the address of 0000 Xxxx Xxxxxxx Xxxx, Xxx Xxxxx, Xxxxxx 00000
("Property Address");
Together with all improvements now or hereafter erected on the
property, and all easements, rights, appurtenances, and rents (subject however
to the rights and authorities given herein to Lender to collect and apply such
rents), all of which shall be deemed to be and remain a part of the property
covered by this Deed of Trust; and all of the foregoing, together with said
property are hereinafter referred to as the "Property";
To secure to Lender the repayment of the indebtedness of principal and
interest evidenced by Borrower's note dated April 22, 1995 ("Note"), which Note
is in the face amount of not less than $1,000, due and payable upon the sale of
the Property; the payment of all other sums, with interest, advanced in
accordance herewith to protect the security of this Deed of Trust; and the
performance of the covenants and agreements of Borrower herein contained.
Borrower covenants that Borrower is lawfully seised of the estate
hereby conveyed and has the right to grant and convey the Property, and theat
the Property is unencumbered, except for a mortgage or deed of trust dated May
9, 1985, and recorded at Book 2111 on May 16, 1985, as Instrument No. 2070053 of
the official records of the County Recorder of Xxxxx County, State of Nevada
(herein "Senior Mortgage") and a second deed of trust issued to Xxxxxxx Xxxxxxx
in the original amount of $200,000, other encumbrances of record. Borrower
covenants that Borrower will warrant and defend generally the title to the
Property against all claims and demands, subject to encumbrances of record.
Borrower and Lender covenant and agree as follows:
1. Payment of principal and interest. Borrower shall promptly pay when
due the indebtedness evidenced by the Note and late charges as provided in the
Note.
2. Funds for taxes and insurances. Borrower shall be obligated to make
such payments of yearly taxes and assessments only to the extent that Borrower
makes such payments to the holder of the Senior Mortgage.
3. Prior mortgages and deeds of trust; liens. Borrower shall perform
all of the Borrower's obligations under the Senior Mortgage or any other
security agreement with a lien which has priority over this Deed of Trust,
including Borrower's covenants to make payments when due. Borrower shall pay all
taxes, assessments and other charges, fines and impositions attributable to the
Property which may attain a priority over this Deed of Trust, and leasehold
payments or ground rents, if any.
4. Hazard insurance. Borrower shall keep the improvements now existing
or hereafter erected on the Property insured against loss by fire, hazards
included within the term "extended coverage," and such other hazards as Lender
may require and in such amounts and for such periods as Lender may require.
The insurance carrier providing the insurance shall be chosen by
Borrower subject to approval by Lender; provided, that such approval shall not
be unreasonably withheld. All insurance policies and renewals shall be in form
acceptable to Lender and shall included a standard mortgage clause in favor of
and in form acceptable to Lender. If the Senior Mortgagees do not hold the
policies and renewals, the Lender shall have the right to do so.
In the event of loss, Borrower shall give prompt notice to the
insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
If the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender within 30 days from the date notice is mailed by Lender to
Borrower that the insurance carrier offers to settle a claim for insurance
benefits, Lender is authorized to collect and apply the insurance proceeds at
Lender's option either to restoration or repair of the Property or to the sums
secured by this Deed of Trust.
5. Preservation and maintenance of property. Borrower shall keep the
Property in good repair and shall not commit waster or permit impairment or
deterioration of the Property.
6. Protection of lender's security. If Borrower fails to perform the
covenants and agreements contained in this Deed of Trust, or if any action or
proceeding is commenced which materially affects Lender's interest in the
Property, then Lender, at Lender's options, upon notice to Borrower, may make
such appearances, disburse such sums and take such action as is necessary to
protect Lender's interest.
Any amounts disbursed by Lender pursuant to this paragraph 6, with
interest, at the Note rate, shall become additional indebtedness of Borrower
secured by this Deed of Trust. Unless Borrower and Lender agree to other terms
of payment, such amounts shall be payable upon notice from Lender to Borrower
requesting payment thereof. Nothing contained in this paragraph 6 shall require
Lender to incur any expense or take any action.
7. Inspection. Lender may make or cause to be made reasonable entries
upon and inspections of the Property, provided that Lender shall give Borrower
notice prior to any such inspection specifying reasonable cause therefor related
to lender's interest in the Property.
8. Borrower not released; forbearance by lender not waiver. Extension
of the time for payment or modification or amortization of the sums secured by
this Deed of Trust granted by Lender to any successor in interest of Borrower
shall not operate to release, in any manner, the liability of the original
Borrower and Borrower's successors in interest. Lender shall not be required to
commence proceedings against such successor or refuse to extend time for payment
or otherwise modify amortization of the sums secured by this Deed of Trust by
reason of any demand made by the original Borrower and Borrower's successors in
interest. Any forbearance by Lender in exercising any right or remedy hereunder
or otherwise afforded by applicable law, shall not be a waiver of or preclude
the exercise of any such right or remedy.
9. Successors and assigns bound; joint and several liability;
co-signers. The covenants and agreements herein contained shall bind, and the
rights hereunder shall inure to, the respective successors and assigns of Lender
and Borrower, subject to the provisions of paragraph 13.
10. Notice. Except for any notice required under applicable law to be
given in another manner, (a) any notice to Borrower provided for in this Deed of
Trust shall be given by mailing such notice by certified mail addressed to
Borrower at the Property Address or at such other address as Borrower may
designate by notice to Lender, and (b) any notice to Lender shall be given by
certified mail, return receipt requested, to Lender's address stated herein or
to such other address as Lender may designate by notice to Borrower. Any notice
provided for in this Deed of Trust shall be deemed to have been given to
Borrower or Lender when given in the manner designated herein.
11. Governing law; severability. The state and local laws applicable to
this Deed of Trust shall be the laws of the jurisdiction in which the Property
is located. The foregoing sentence shall not limit the applicability of Federal
law to this Deed of Trust. In the event that any provision of clause of this
Deed of Trust or the Note conflicts with applicable law, such conflict shall not
affect other provisions of this Deed of Trust or the Note which can be given
without the conflicting provision, and to this end the provisions of this Deed
of Trust and the Note are declared to be severable.
12. Borrower's copy. Borrower shall be furnished a conformed copy of
the Note and of this Deed of Trust at the time of execution or after
recordation.
13. Transfer of property; assumption. If all or any part of the
Property or an interest therein is sold or transferred by Borrower, excluding
(a) the creation of a lien or encumbrance subordinate to this Deed of Trust, (b)
a transfer by devise, descent or by operation of law upon the death of a joint
tenant, or (c) the grant of any leasehold interest of three years or less not
containing an option to purchase, Lender may declare all of the sums secured by
this Deed of Trust to be immediately due and payable.
If Lender exercises such option to accelerate, Lender shall mail
Borrower notice of acceleration in accordance with paragraph 10. Such notice
shall provide a period of not less than ten days from the date the notice is
mailed within which Borrower may pay the sums declared due. If Borrower fails to
pay such sums prior to the expiration of such period, Lender may, without
further notice or demand on Borrower, invoke any remedies permitted by paragraph
14.
14. Acceleration; remedies. Except as provided in paragraph 13, upon
Borrower's breach of any covenant or agreement of Borrower in this Deed of
Trust, including the covenants to pay when due any sums secured by this Deed of
Trust, Lender prior to acceleration shall mail notice to Borrower as provided in
paragraph 10 specifying: (1) the breach; (2) the action required to cure such
breach; (3) a date, not less than ten days from the date the notice is mailed to
Borrower, by which such breach must be cured; and (4) that failure to cure such
breach on or before the date specified in the notice may result in acceleration
of the sums secured by this Deed of Trust and sale of the Property. The notice
shall further inform Borrower of the right to reinstate after the acceleration
and the right to bring a court action to assert the nonexistence of a default or
any other defense of Borrower to acceleration and sale. If the breach is not
cured on or before the date specified in the notice, Lender, at Lender's option,
may declare all of the sums secured by this Deed of Trust to be immediately due
and payable without further demand and may invoke the power of sale and any
other remedies permitted by applicable law. Lender shall be entitled to collect
all reasonable costs and expenses incurred in pursuing the remedies provided in
this paragraph 14, including, but not limited to, reasonable attorney's fees.
If Lender invokes the power of sale, Lender shall execute or cause
Trustee to execute a written notice of the occurrence of an event of default and
of Lender's election to cause the Property to be sold and shall cause such
notice to be recorded in each county in which the Property or some part thereof
is located. Lender or Trustee shall mail copies of such notice in the manner
prescribed by applicable law. Trustee shall give public notice of sale to the
persons and in the manner prescribed by applicable law. After the lapse of such
time as may be required by applicable law, Trustee, without demand on Borrower,
shall sell the Property at public auction to the highest bidder at the time and
place and under the terms designated in the notice of sale in one or more
parcels and in such order as Trustee may determine. Trustee may postpone sale of
all or any parcel of the Property by public announcement at the time and place
of any previously scheduled sale. Lender or Lender's designee may purchase the
Property at any sale.
Trustee shall deliver to the purchaser a Trustee's deed conveying the
Property so sold without any covenant or warranty, expressed or implied. The
recitals in the Trustee's deed shall be prima facie evidence of the trust of the
statements made therein. Trustee shall apply the proceeds of the sale in the
following order: (a) to all reasonable costs and expenses of the sale,
including, but not limited to, reasonable Trustee's and attorney's fees and
costs of title evidence; (b) to pay Senior Mortgages and Deeds of Trust; (c) to
all sums secured by this Deed of Trust; and (d) the excess, if any, to the
person or persons legally entitled thereto.
15. Borrower's right to reinstate. Notwithstanding Lender's
acceleration of the sums secured by this Deed of Trust due to Borrower's breach,
borrower shall have the right to have any proceedings begum by Lender to enforce
this Deed of Trust discontinued at any time prior to five days before sale of
the Property pursuant to the power of sale contained in this Deed of Trust or at
any time prior to entry of a judgment enforcing this Deed of Trust if: (a)
Borrower pays Lender all sums which would be then due under this Deed of Trust
and the Note had no acceleration occurred; (b) Borrowers cure all breaches of
any other covenants or agreements of Borrower contained in this Deed of Trust;
(c) Borrower pays all reasonable expenses incurred by Lender and Trustee in
enforcing the covenants and agreements of Borrower contained in this Deed of
Trust, and in enforcing Lender's and Trustee's remedies as provided in paragraph
15, including, but not limited to, reasonable attorney's fees; and (d) Borrower
takes such action as Lender may reasonably require to assure that the lien of
this Deed of Trust, Lender's interest in the Property and Borrower's obligation
to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon
such payment and cure by Borrower, this Deed of Trust and the obligations
secured hereby shall remain in full force and effect as if no acceleration had
occurred.
16. Assignment of rents; appoint of receiver; lender in possession. As
additional security hereunder, Borrowers assign to Lender (subject to the senior
rights of the Senior Mortgage and Senior Deed of Trust) the rents of the
Property, provided that Borrower shall, prior to acceleration under paragraph 15
or abandonment of the Property, have the right to collect and retain such rents
as they become due and payable.
Upon acceleration under paragraph 14 or abandonment of the Property,
Lender, in person, by agent or by judicially appointed receiver shall be
entitled to enter upon, take possession of and manage the Property and to
collect the rents of the Property including those past due. All rents collected
by Lender or the receiver shall be applied first to payment of the costs of
management of the Property and collection of rents, including, but not limited
to, receiver's fees, premiums on receiver's bonds and reasonable attorney's
fees, Senior Mortgages and Senior Deeds of Trust and then to the sums secured by
this Deed of Trust. Lender and the receiver shall be liable to account only for
those rents actually received.
17. Reconveyance. Upon payment of all sums secured by this Deed of
Trust, Lender shall require Trustee to reconvey the Property and shall surrender
this Deed of Trust and all notes evidencing indebtedness secured by this Deed of
Trust to Trustee. Trustee shall reconvey the Property without warranty and
without charge to the person or persons legally entitled thereto. Such person or
persons shall pay all costs of recordation, if any.
18. Substitute trustee. Lender, at Lender's option, may from time to
time remove Trustee and appoint a successor trustee to any Trustee appointed
hereunder. Without conveyance of the Property, the successor trustee shall
succeed to all the title, power and duties conferred upon the Trustee herein and
by applicable law.
19. Requests for notices. Borrower requests that copies of the notice
of default and notice of sale be sent to Borrower's address which is 0000 X.
Xxxxxxxx Xxxxx, Xxx Xxxxx, Xxxxxx 00000. Lender requests that copies of notices
of foreclosure from the holder of the Senior Mortgage and any other lien which
has priority over this Deed of Trust be sent to Lender's address, as set forth
on page one of this Deed of Trust.
In witness whereof Borrower has executed this Deed of Trust.
BECKWORK, LLC,
a Nevada limited liability company
By: /s/ Xxxxxx X. Xxxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxx
Xxxxxx X. Xxxxxxxxx, Manager Xxxxxxx X. Xxxxxxx, Manager
