EXHIBIT 10.2
PURCHASE AGREEMENT
FOR
REAL AND PERSONAL PROPERTY
This Purchase Agreement entered into this 28th day of March, 2002
("Agreement'), by and between NZ CORPORATION, an Arizona corporation, NZ
DEVELOPMENT CORPORATION, an Arizona corporation, and NZU, INC., a New Mexico
corporation, and LIPID SCIENCES, INC., an Arizona corporation (collectively
referred to as "Seller") and NZ TRUST, LLC, an Arizona limited liability
company, NZ SNOWFLAKE, LLC, an Arizona limited liability company, NZ MILKY
RANCH, LLC, an Arizona limited liability company, NZ SILVER CREEK, LLC, an
Arizona limited liability company, NZ XXXXXX CITY, LLC, an Arizona limited
liability company, NZ NEW MEXICO LAND LLC, an Arizona limited liability company,
NZ URANIUM, LLC, an Arizona limited liability company, NZ TRAVERTINE, LLC, an
Arizona limited liability company, NZ OIL AND GAS, LLC, an Arizona limited
liability company, NZ MINERALS, LLC, an Arizona limited liability company, NZ
HISTORY AND ARTIFACTS, LLC, an Arizona limited liability company (collectively
referred to as "Buyer")
1. Binding Agreement. This Agreement shall constitute a binding contract
between Buyer and Seller for the purchase and sale of all right, title and
interest of Seller in and to that certain real and personal property more
particularly described in Section 2 hereof (collectively, the "Property" as
hereinafter defined). Buyer and Seller hereby agree to do such things, and
execute such documents, as shall be necessary or appropriate in order to
consummate the transaction contemplated hereby in accordance with the terms
hereof.
2. Property. As used herein, the term "Property" shall include all of
Seller's right, title and interest in, to and under the following described real
and personal property:
a. The real property and appurtenant water rights located in Navajo
County and Apache County, Arizona, and Cibola, Xxxx Xxx, and XxXxxxxx
Counties, New Mexico, which is described on Exhibits "X-0," "X-0," "X-0,"
"A-4" and "A-5" attached hereto (the "Land"), including all of Seller's
interest in and to all buildings, fences, fixtures, xxxxx, corrals,
chutes, squeeze chutes, pens, holding traps, range improvement practices
and other structures and improvements of every kind and nature located on
the Land (collectively, the "Improvements") which Land and Improvements
shall be collectively known as the Real Property. For purposes of this
Agreement, Real Property shall also include:
All rights and hereditaments running with and appurtenant to
the Land, including, without limitation, all appurtenant easements
and rights of way and all of Seller's interest in adjacent highways,
roads, streets, rights of way and easements.
All ditch and ditch rights, reservoirs and reservoir rights,
well and well rights, irrigation grandfathered water rights and
surface and groundwater rights appurtenant to or used in connection
with the Land and all water tanks, xxxxx, pumps, well equipment,
irrigation equipment, pivots, sumps and other pumps, situated on or
used in connection with the Land.
All zoning and development rights affecting the Land,
including, without limitations, all Seller's rights in and under any
deed restrictions, property owner's associations or master plan
affecting the Real Property.
b. All personal property owned by Seller and located on the Land or
used in connection therewith, including, without limitation, petrified
wood, Indian artifacts and related items, together with certain artifacts,
documents, and Indian artwork of historical interest located in Seller's
office and storage units in Phoenix, Arizona, and Albuquerque, New Mexico
("Tangible Personal Property"), including, but not limited to, the items
more particularly described on Exhibit "B", and all subject to a use
agreement permitting Seller to use or display certain items of the
Tangible Personal Property.
c. Except as to those certain approximately 79,196.93 acres of
mineral rights known to the parties as the Acoma Pueblo rights, all
minerals whatsoever and all sand and gravel and other construction
materials, and other rights and interests thereof owned or leased by
Seller ("Mineral Rights"), including, without limitation, those described
on Exhibit "C" attached hereto.
d. Any leases and other agreements relating to the Mineral Rights or
to the use or occupancy of the Land and/or the Improvements or any portion
thereof (together with any amendments, extensions, guarantees or
modifications to such leases and other agreements), and all claims and
other rights related thereto (the "Leases"), including, without
limitation, those described in Exhibit "D" attached hereto.
e. All of Seller's right, title and interest in and to those certain
First American Title Company Trust Agreements 8340, 8398, 6798, 4517 and
7602 ("Trust Agreements"), wherein NZ Development is the beneficiary
together with all contractual rights and liabilities arising out of or in
anyway connected with the agreements between NZ Development and First
United Realty, Inc., an Arizona corporation, including the rights of
Seller to that certain Agreement between NZ Development Corporation and
First United Service Corporation dated June 3, 1997, and Exclusive Sales
Agency Agreement between NZ Development Corporation and First United
Service Corporation dated January 1, 2001, all as more particularly
described on Exhibit "E" attached hereto.
f. All of the right, title and interest held by NZU in and to all of
the real property owned by it in XxXxxxxx County, New Mexico, described in
subsection "a" above and any and all personal property presently owned by
it, including the uranium lease known to the parties as the URI lease and
certain Federal mining claims ("Uranium Rights"), all as more particularly
described on Exhibit "F" attached hereto.
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g. The names "New Mexico and Arizona Land Company", "NZ
Corporation", "NZU", "NZ Development", and "River Xxxxxxx Ranch"
(including all registrations therefor and any pending applications for
registration thereof "hereinafter the Names") and all intellectual
property rights of Seller, including, without limitation, all brands,
trademarks, logos and literary rights] all as more particularly described
on Exhibit G (collectively the "Intellectual Property"), subject, however,
to Seller's reservation of the right to continue use of the Names for a
period of 5 years from the date hereof for the purpose of winding down its
operations and any other lawful purpose.
h. Certain oil and gas estates located in Oklahoma, together with
the lessor's interest in that certain lease, known to the parties as the
Marathon lease, together with certain limited partnership interests all as
described on Exhibit H (collectively the "Oil and Gas Interests").
i. All of Seller's legal rights, claims, causes of action (xxxxxx
and inchoate), if any, relating to the Property, including, without
limitation, claims for theft, damage or injury to the Property.
3. Purchase Price. The purchase price for all of the Property shall be
Nine Million Two Hundred Thousand Dollars ($9,200,000.00) (the "Purchase
Price"). The balance of the Purchase Price (i.e., reduced by the full amount of
the "Xxxxxxx Money Deposit" (as hereinafter defined) and increased or reduced by
such funds as are required to take into account the closing prorations required
by this Agreement) shall be due from Buyer at the "Close of Escrow" (as
hereinafter defined) and shall be deposited by Buyer with the Escrow Agent on or
before the day of Close of Escrow (the "Closing Date") by Buyer depositing in
cash or by Federal Reserve Bank Wire Transfer so that Escrow Agent shall have
the cash amount of the Purchase Price in immediately available funds the sum of
One Million Seven Hundred Forty Thousand Dollars ($1,740,000.00) and
simultaneously executing the Promissory Note, Deed of Trust, Security Agreement,
Collateral Assignment and UCC-1 documents attached hereto as Exhibit 1-A, 1-B,
1-C, and 1-D. The amounts to be deposited by Buyer at the Close of Escrow
pursuant to the preceding sentence are referred to herein as the "Closing
Funds." All prorations and adjustments determined and applied following the
Close of Escrow shall be credited against the amount due under the Promissory
Note.
4. Xxxxxxx Money. In consideration of Seller's entering into this
Agreement, Buyer shall deposit with Escrow Agent an xxxxxxx money deposit in the
amount of One Hundred Thousand Dollars ($100,000.00), which amount, together
with all interest or other earnings thereon (collectively, the "Xxxxxxx Money
Deposit"), shall be deposited and maintained by Escrow Agent in a federally
insured money market account, shall be applied to the Purchase Price only in the
event the transaction contemplated by this Agreement is consummated, except as
otherwise expressly provided herein. As used herein, the term "Opening of
Escrow" shall refer to the date upon which both a fully executed counterpart of
this Agreement and the Xxxxxxx Money Deposit have been deposited with Escrow
Agent.
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5. Title Review for Real Property.
a. REVIEW AND OBJECTION BY BUYER. Seller shall, at Seller's expense,
cause Escrow Agent, as soon as possible, to deliver to Buyer a commitment
to insure title (the "Title Report") to the Real Property. Buyer shall be
entitled to object, in its sole and absolute discretion, to any matters
disclosed by the Title Report by delivering a written notice (a "Title
Objection Notice") to Seller and Escrow Agent on or before ten (10) after
Buyer's receipt of the Title Report (together with readable copies of all
documents referenced therein). Any Title Objection Notice delivered by
Buyer pursuant to this Section 5.a shall specify in reasonable detail any
matter to which Buyer objects. If Escrow Agent subsequently issues any
amendment to the Title Report disclosing any additional title matters,
Buyer shall be entitled to object to any such additional matter by
delivering a Title Objection Notice to Seller and Escrow Agent on or
before ten (10) days after Escrow Agent has delivered to Buyer the
amendment to the Title Report (together with readable copies of any
additional documents referenced therein). If Buyer fails to deliver a
Title Objection Notice objecting to any matter set forth in the Title
Report or any subsequent amendment thereto within the allowed time periods
described above, then Buyer shall conclusively be deemed to have approved
such matters. If the time periods provided in this paragraph do not expire
prior to the Closing of Escrow, then the provisions of Section 5.c below
shall apply.
b. CURE BY SELLER. If Buyer timely delivers any Title Objection
Notice, then Seller may, within three (3) business days after receipt of
such Title Objection Notice, notify Buyer and Escrow Agent in writing (the
"Cure Notice") that Seller will attempt to remove or satisfy such matter
objected to by Buyer as soon as possible, and in any event on or before
Close of Escrow or such later date as shall be consented to by Buyer in
writing (the "Cure Period"). The obtaining of a commitment by Escrow Agent
to delete as an exception to coverage on Buyer's title insurance policy or
to insure over by endorsement in form reasonably acceptable to Buyer, at
Seller's expense, any matter objected to by Buyer shall constitute a cure
of such matter for purposes of this Agreement. If Seller does not deliver
a Cure Notice, then Buyer shall, within two (2) days after the expiration
of the three- (3) business-day period for the delivery of the Cure Notice,
notify Seller and Escrow Agent in writing of Buyer's election to either
(i) terminate this Agreement, whereupon this Agreement shall terminate and
the Xxxxxxx Money Deposit shall be refunded to Buyer by Escrow Agent,
Escrow Agent shall return to Buyer all documents Buyer deposited with
Escrow Agent in connection with the Escrow, Escrow Agent shall return to
Seller all documents Seller deposited with Escrow Agent in connection with
the Escrow, and neither Party shall have any further right, obligation or
liability under this Agreement except for those liabilities and
obligations that are specified herein to survive the termination of this
Agreement, or (ii) proceed with this transaction and waive Buyer's
objection to such matter. Notwithstanding anything contained to the
contrary herein, if Seller does not timely deliver a Cure Notice and Buyer
fails to timely notify Seller and Escrow Agent of its election to either
terminate or proceed with this transaction, then Buyer shall be deemed to
have elected to proceed with this Agreement. If Seller delivers a Cure
Notice but is thereafter unable to cure the matter(s) which is/are the
subject of the Cure Notice within the Cure Period, then Buyer shall,
within two (2) days after the expiration of the Cure Period, notify Seller
and
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Escrow Agent in writing of Buyer's election to either (i) terminate this
Agreement, whereupon this Agreement shall terminate and the Xxxxxxx Money
Deposit shall be refunded to Buyer by Escrow Agent, Escrow Agent shall
return to Buyer all documents Buyer deposited with Escrow Agent in
connection with the Escrow, Escrow Agent shall return to Seller all
documents Seller deposited with Escrow Agent in connection with the
Escrow, and neither Party shall have any further right, obligation or
liability under this Agreement except for those liabilities and
obligations that are specified herein to survive the termination of this
Agreement, or (ii) proceed with this transaction and waive Buyer's
objection to such matter. If the time periods provided in this paragraph
do not expire prior to the Close of Escrow, then the provisions of Section
5.c below shall apply.
c. The parties acknowledge that a Title Report and/or readable
copies of all documents referenced in each Title Report for all or a
portion of the Real Property (the "Remaining Portion") may not be
available for Buyer's review prior to the scheduled Close of Escrow Date
in sufficient time to accommodate the title review periods provided in
Section 5.a. In such event, Seller shall provide Buyer with said Title
Report and readable copies of all documents referenced therein for the
Remaining Portion as soon as such is made available, but in no event later
than thirty (30) days following Close of Escrow. Buyer shall have ten (10)
days following receipt of said Title Report (together with readable copies
of all documents referenced therein) to object to any consensual lien or
any material adverse encumbrance, lien, matter or cloud affecting the Real
Property. For the purpose of this Agreement, material adverse encumbrance,
liens, matter or cloud shall be deemed to be a lien, encumbrance, matter
or cloud on title which in the reasonable, good faith opinion of Buyer
significantly reduces the value of the Real Property affected by such
item. In such event, Buyer shall have the right to deliver to Seller
within said ten (10) day period an Objection Notice as provided in
subparagraph "a" above. Following receipt of said Objection Notice, Seller
shall have the right to cure such objection as provided in subparagraph
"b" above. In the event Seller either fails to deliver a Cure Notice or
having delivered such Notice, fails to cure the Objection, Buyer may
rescind the purchase of the portion of the Real Property affected by such
material adverse lien, encumbrance, matter or cloud. In the event of
Buyer's election to rescind, the parties shall cooperate in good faith in
determining the appropriate reduction in the Purchase Price arising out of
such rescission. In the event the parties are unable to agree on the
amount of said reduction, either party may apply to the prevailing judge
of Maricopa County, Arizona, to appoint an arbitrator which will be
authorized by the parties to conduct a binding arbitration of the dispute.
6. Feasibility Contingency. Buyer shall have ten (10) days from the
Opening of Escrow (the "Feasibility Period") to determine, in its sole and
absolute discretion, whether the condition of the Seller's Property is suitable
for Buyer's intended acquisition and use thereof. If Buyer determines that
either the condition of the Seller's Property or the leases which encumber the
Property are not suitable for Buyer's intended acquisition or use thereof, Buyer
shall notify Seller and Escrow Agent in writing of such determination or failure
within the Feasibility Period. If Buyer so notifies Seller and Escrow Agent of
such determination, Buyer shall be deemed to have rescinded this Agreement, in
which event, Escrow Agent shall (i) return to Buyer the Xxxxxxx Money Deposit,
(iii) return to Buyer all documents Buyer deposited with Escrow Agent in
connection with the Escrow, and (iii) return to Seller all documents Seller
deposited with
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Escrow Agent in connection with the Escrow, and thereupon this Agreement shall
terminate and neither Party shall have any further right, obligation or
liability under this Agreement, except for those liabilities and obligations
that are specified herein to survive the termination of this Agreement. If Buyer
does not so notify Seller and Escrow Agent in writing of such determination
within the Feasibility Period, Buyer's right to rescind this Agreement and have
the Xxxxxxx Money Deposit returned pursuant to this Section 6 shall terminate.
7. Investigation. Buyer and its representatives, agents, consultants and
employees shall have the right, at its own risk, cost and expense, to enter
upon, survey, examine, test and otherwise inspect the Property at any reasonable
time and upon reasonable notice during the pendency of the Escrow, provided such
examination does not unreasonably interfere with Seller's or Seller's tenants'
use of the Property. Seller shall cooperate with Buyer in order to facilitate
Buyer's access to the Property and information concerning the same consistent
with the foregoing provisions of this Section 7. Buyer agrees to give Seller
reasonable notice of any invasive tests it intends to conduct upon Seller's
Property and obtain Seller's prior approval for the same, which approval shall
not be unreasonably withheld. Following any examination of Seller's Property,
Buyer shall return the Property to the condition in which it was prior to such
examination. Buyer shall indemnify and hold Seller harmless for, from and
against any and all defaults, liabilities, causes of action, demands, claims,
damage or expenses of any kind, including reasonable attorneys' fees and court
costs, arising as a consequence of any examination, test, inspection of or
activity upon the Property pursuant to this Section 7 (except for such matters
arising as a result of Buyer's discovery of existing conditions) (the
"Inspection Indemnity"). The Inspection Indemnity shall survive the Close of
Escrow and any termination or cancellation of this Agreement. Seller shall give
prompt notice to Buyer if all or any portion of the Property is wholly or
partially damaged or condemned prior to Close of Escrow.
8. General Assignment of Rights and Certain Reservations. Seller does
hereby agree to assign by a Quit Claim Deed any and all water and other
appurtenant real property interests or rights it may have previously reserved in
connection with the sale of any real property by Seller to third parties prior
to the date of Close of Escrow and all non-appurtenant water rights. Seller
does, however, expressly reserve to itself and exclude from the scope of the
transaction the following real and personal property:
(a) the improved property known as the Plant Ranch House together with
approximately 320 acres of land contiguous thereto (except Seller
shall convey to Buyer ownership of all petrified wood located on
such real property);
(b) all of Seller's rights as lessor in and to all grazing leases on the
property known to the parties as the Milky Ranch and the Plant
Ranch;
(c) all of Section 19, Township 16 North, Range 25 East, of the Gila and
Salt River Base and Meridian, Apache County, Arizona;
(d) Seller's rights as lessee under certain pending and existing Arizona
State Grazing Leases and Seller's rights as applicant in connection
with certain applications for Arizona State Grazing Leases.
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(e) Seller's ownership of all grazing rights on any of the Real Property
in Apache County.
The parties agree that at an appropriate time following Close of
Escrow as determined by Seller in the exercise of its discretion, but no later
than the date that is one year from the Close of Escrow (however, Buyer may
extend such deadline, in Buyer's reasonable discretion), Seller will arrange for
the conveyance of said items (a) through (d) to Buyer for $100.00 and shall
provide the same title insurance coverage as Seller is providing for the other
Real Property.
9. Broker's Commission. Each party represents and warrants to the other
that no real estate sales or brokerage commissions or like commissions are or
will be due to any party in connection with this transaction. Seller shall
indemnify and hold Buyer harmless from and against any claim, demand or suit for
any brokerage commission, finder's fee or similar charge in respect of the
execution of this Agreement or the transaction contemplated by this Agreement
based on any act by or agreement or contract (or alleged act, agreement or
contract) of Seller, and for all losses, obligations, costs, expenses and fees
(including attorneys' fees) incurred by Buyer on account of or arising from the
same. Buyer shall indemnify and hold Seller harmless from and against any claim,
demand or suit for any brokerage commission, finder's fee or similar charge in
respect of the execution of this Agreement or the transaction contemplated by
this Agreement based on any act by or agreement or contract (or alleged act,
agreement or contract) of Buyer, and for all losses, obligations, costs,
expenses and fees (including attorneys' fees) incurred by Seller on account of
or arising from the same. The indemnities contained in this Section 9 shall
survive the Close of Escrow or the termination or cancellation of this
Agreement.
10. Seller's Closing Items. Prior to Close of Escrow, Seller shall deposit
into Escrow the following documents, instruments and other items:
a. Special warranty deeds for the Real Property (the "Deeds");
b. A xxxx of sale which shall convey to Buyer all of Seller's title
to all of the Personal Property, both tangible and intangible;
c. An assignment of the Leases and security deposits, together with
the originally executed Leases, and the security deposits and any prepaid
rent (other than that relating to the then current month) shall be paid to
Buyer;
d. A deed of all of Seller's interest in the Mineral Rights;
e. An assignment of all of Seller's interest in the Trust
Agreements;
f. An assignment of all of Seller's interest in Seller's
Intellectual Property;
g. A deed and assignment of all of Seller's interest in the Uranium
Rights.
h. Possession of the Property;
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i. The Certification of Non-foreign Status as provided in Treas.
Reg. 1.1445-2T(b)(2)(iii)(B) or in any other form as may be required by
the Internal Revenue Code or the regulations issued thereunder;
j. Such other customary items and instruments as shall be required
by the Escrow Agent in connection with the issuance of its title insurance
policy to Buyer pursuant to this Agreement or as shall be reasonably
requested by counsel to Buyer and consistent with the terms of this
Agreement;
k. Any other documents required by this Agreement to be delivered by
Seller or reasonably requested by Buyer to consummate the transaction
contemplated hereby; and
l. An appropriate affidavit of property value with respect to the
Real Property.
The documents described in Sections 10.b through 10.l are referred to herein
collectively as the "Other Conveyance Documents." All of such documents,
instruments and other items shall be duly executed and acknowledged. At Close of
Escrow, Escrow Agent shall deliver such documents to Buyer or record them, as
appropriate.
Upon Close of Escrow, Seller shall convey title (i) to the Real Property,
free and clear of all taxes, claims, charges, assessments, easements,
restrictions, liens, trusts, mortgages, security interests and agreements,
financing statements and encumbrances, except only Permitted Encumbrances. As
used herein, the term "Permitted Encumbrances" shall mean only (i) those matters
which appear as exceptions to coverage in the Title Report (and any amendment
thereto) which are approved, or deemed approved, by Buyer pursuant to Section 5,
(ii) all applicable laws, (iii) liens for taxes and assessments not then due and
payable, (iv) any liens arising through Buyer or Buyer's employees or agents,
(v) all matters that an accurate inspection and/or accurate survey of the Land
or the Personal Property would reveal, (vi) matters previously disclosed to
Buyer by Seller in writing, and (vii) those matters which appear on Schedule B,
Part II, of the Title Report (and any amendment thereto) which are timely
disapproved by Buyer in accordance with the terms hereof, with respect to which
Seller delivers a Cure Notice, and with respect to which Buyer elects to proceed
with this transaction and waive Buyer's objection to such matter notwithstanding
Seller's failure to effect such cure within the Cure Period.
As disclosed to Buyer, Seller has previously conveyed certain real
property (the "Previously Conveyed Property") to the Hopi Indian Tribe and
certain third parties. If any deed used to convey the Real Property to Buyer is
found to contain a legal description that includes any of the Previously
Conveyed Property, Buyer will cooperate with Seller to re-record such deed with
a corrected legal description that excludes the Previously Conveyed Property.
Seller shall provide Buyer with standard owner's policies of title
insurance issued by Escrow Agent in the total amount of $5,000,000 insuring that
Buyer (or such Buyer entity as Buyer designates to hold title to the applicable
portion of the Real Property) is the owner of the Real Property (or applicable
portion thereof) free and clear of all matters other than the Permitted
Encumbrance.
11. Buyer's Closing Items. On or before the Close of Escrow, Buyer shall
deposit into Escrow the Closing Funds as provided in Section 3. At or before
Close of Escrow, Buyer
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shall execute and acknowledge such of the Other Conveyance Documents as require
Buyer's signature, including an assumption of all of Seller's obligations with
respect to any matter arising out of ownership of the Property and occurring
subsequent to the Close of Escrow, and deliver the same to the Escrow Agent. As
a condition to Buyer's obligations to purchase the Property and proceed with the
Close of Escrow, Buyer shall have received a written estoppel certificate
executed by First American Title Insurance Company ("Trustee"), as the Trustee
under the Trust Agreements certifying that, to the best of Trustee's knowledge:
(a) the information Trustee has delivered to Buyer regarding the Trust
Agreements, including, without limitation, the copies of the Trust Agreements,
is true, accurate and correct; (b) the Trust Agreements are in full force and
effect and have not been amended or modified; (c) Seller's interest in the Trust
Agreements has not been conveyed, assigned or encumbered; and (d) the amount of
the outstanding receivables currently held by Trustee under the Trust Agreements
and the amount of fee land currently owned by Trustee under the Trust Agreement.
12. Representations and Warranties by Seller. In order to induce Buyer to
enter into this Agreement and to purchase the Property, Seller hereby makes the
following representations and warranties, each of which is material and shall,
together with all covenants, agreements and indemnities set forth in or made
pursuant to this Agreement, survive Close of Escrow, notwithstanding any
investigation at any time made by or on behalf of Buyer:
a. NZ Development Corporation and NZ Corporation are each a
corporation duly organized and validly existing under the laws of the
State of Arizona. NZU, INC., is a corporation duly organized and validly
existing under the laws of the State of New Mexico. Seller has all
necessary power and authority and has taken all necessary corporate action
to execute, deliver and perform this Agreement and consummate all of the
transactions contemplated by this Agreement.
b. The execution of this Agreement by Seller and its delivery to
Buyer and consummation by Seller of the transactions contemplated hereby
have been duly authorized by all necessary action on the part of Seller
and the shareholders of Seller. This Agreement is the valid and binding
obligation of Seller, enforceable against it in accordance with its terms.
c. No consent from any third party is necessary in order for Seller
to execute and deliver or perform its obligations under this Agreement.
d. Seller has no actual knowledge (as distinguished from
constructive or imputed knowledge), of any discharge, spillage,
uncontrolled loss, seepage or filtration (a "Spill") of oil, petroleum or
chemical liquids or solids, liquid or gaseous products or any hazardous
waste or hazardous substance (as those or similar terms are used in the
Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended, the Resource Conservation and Recovery Act of 1976, as
amended, or in any other applicable federal, state or local laws,
ordinances, rules or regulations relating to protection of public health,
safety or the environment, as such laws may be amended from time to time)
at, upon, under or within the Real Property. To the best of Seller's
knowledge, there is no proceeding or action pending or threatened by any
person or governmental agency regarding the environmental condition of the
Real Property, nor
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have there been or are there now any underground storage tanks located on
the Real Property. Notwithstanding the foregoing representations in this
paragraph, Buyer acknowledges that Seller makes no representation
whatsoever with regard to de minimis Spills which one might reasonably
expect to occur in connection with the ordinary operation and maintenance
of a property like the Real Property.
e. To the best of Seller's knowledge, except as disclosed by Seller
in writing to Buyer, there is no litigation, condemnation, administrative
or other proceeding or hearing either instituted or threatened, or any
basis therefor, which might adversely affect the use, operation or value
of all or any material portion of the Property or Seller's ability to
perform hereunder.
f. To the best of Seller's knowledge, except as disclosed by Seller
in writing to Buyer, there are no contracts, agreements or arrangements,
written or oral, express or implied, affecting or relating to the Property
other than this Agreement, matters which will appear in Schedule B of the
Title Report, and the matters listed on Exhibit "2" attached hereto, true,
correct and complete copies or, in the case of oral agreements,
descriptions, of which (i.e., the matters listed on Exhibit "2") have been
provided to Buyer, which contracts, agreements and arrangements are, to
the best of Seller's knowledge, in full force and effect without any
existing, pending or threatened default.
g. Except as disclosed to Buyer in writing, no portion of the
Property has been sold, conveyed or hypothecated subsequent to February
23, 2002, except in the ordinary course of business.
h. To the best of Seller's knowledge, there has been no uranium
processing or milling on the Real Property.
i. Seller shall maintain the Property until the Close of Escrow in
its present condition, ordinary wear and tear excepted.
j. Seller is not involved as a debtor in any state or federal
bankruptcy, reorganization, arrangement, insolvency proceedings,
receivership or any other debtor-creditor proceeding. Seller has not made
any assignment for the benefit of creditors generally.
k. Seller owns fee title to the Real Property. Except as disclosed
to Buyer by Seller in writing, to the best of Seller's knowledge, there
are no undisclosed leases, easements, purchase options, right of first
refusal, liens (including, without limitation, mechanic's, laborer's or
materialmen's liens) or encumbrances that may affect title to the
Property. Except as disclosed to Buyer by Seller in writing, to the best
of Seller's knowledge, there are no other parties in possession of any
portion of the Property, including, without limitation, lessees or
trespassers.
l. If prior to the Close of Escrow Seller learns that there has been
a material change in any information Seller has previously given to Buyer,
Seller shall immediately notify Buyer of such change.
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As used in this Agreement, the phrase "to the best of Seller's knowledge" shall
refer to the present actual knowledge of Xxxxxx X. Xxxxxx, R. Xxxxx Xxxxxxxxxx
and X.X. Xxxxx, and not any knowledge of Seller's other employees, agents,
representatives or professionals. It is understood by the parties that
warranties and representations made herein to the best of Seller's knowledge are
made without special inquiry by Seller.
13. Limited Representations and Warranties by Seller. EXCEPT AS OTHERWISE
EXPRESSLY PROVIDED IN THIS AGREEMENT, THE DEED OR THE OTHER CONVEYANCE
DOCUMENTS, BUYER IS ACQUIRING THE PROPERTY "AS IS, WHERE IS" WITH ALL FAULTS AND
DEFECTS AND WITHOUT WARRANTY OF TITLE OR FITNESS.
14. Representations and Warranties by Buyer. In order to induce Seller to
enter into this Agreement and to sell the Property, Buyer hereby makes the
following representations and warranties, each of which is material and shall
survive Close of Escrow, notwithstanding any investigation at any time made by
or on behalf of Seller:
a. Buyer has all necessary power and authority to execute, deliver
and perform this Agreement and consummate all of the transactions
contemplated by this Agreement. This Agreement is the valid and binding
obligation of Buyer, enforceable against it in accordance with its terms.
b. To the best of Buyer's knowledge, neither the execution of this
Agreement nor the consummation of the transactions contemplated hereby
will: (i) conflict with, or result in a breach of, the terms, conditions
or provisions of, or constitute a default under, any agreement or
instrument to which Buyer is a party, (ii) violate any restriction,
requirement, covenant or condition to which Buyer is subject, and (iii)
constitute a violation of any applicable code, resolution, law, statute,
regulation, ordinance, rule, judgment, decree or order.
15. Close of Escrow. Close of Escrow shall be defined as the consummation
of the purchase and sale transaction in accordance with this Agreement. Each
party's obligation to close escrow is contingent upon the complete discharge of
all of the other party's obligations as set forth herein. The Closing Date shall
be March 29, 2002, or such earlier date as to which the Parties agree. Upon
Close of Escrow, (a) the executed and acknowledged Deed shall be delivered and
recorded, and the executed Other Conveyance Documents shall be delivered to
Buyer, (b) the Purchase Price shall be paid to Seller as provided in Section 3,
net of closing costs and other charges allocable to Seller, and (c) full and
unfettered possession of the Real Property, subject only to Permitted
Encumbrances, and full and unfettered possession of the balance of Seller's
Property, shall be delivered to Buyer. The parties agree that Seller's
obligations hereunder are expressly conditioned upon Buyer closing escrow on the
entirety of this transaction and acquiring all of Seller's Property. In no event
shall Seller have the right to acquire less than all of Seller's Property.
16. Settlement Charges; Prorations and Adjustments. Seller shall pay for
the title examination and the title insurance premium for a standard owner's
title insurance premium for the Real Property. Buyer shall pay the incremental
premium for any ALTA Extended Coverage
11
Owner's Policy and any other endorsements requested by Buyer. The parties
acknowledge that no title insurance shall be provided for any personal property.
Any recording fees shall be borne equally by Seller and Buyer. Buyer and Seller
shall each pay its own legal fees related to the preparation of this Agreement
and all documents required to settle the transaction contemplated hereby. All
other changes shall be apportioned in the manner customary in the jurisdiction
wherein the Property is located. In addition to the foregoing, at Close of
Escrow, the following adjustments and prorations shall be computed as of the
Closing Date, as follows:
a. Real estate and personal property taxes shall be apportioned as
of the Closing Date. The proration of the undetermined taxes will be based
upon a 365 day year and upon the most recently available tax use, rate and
valuation information.
b. All special assessments and other similar charges shall be
prorated as of the Closing Date.
c. All other charges and fees customarily prorated and adjusted in
similar transactions.
d. Rent under any Leases shall be prorated as of the Closing Date.
e. Seller will pay to Buyer at Close of Escrow (or credit on the
Purchase Price payable at Close of Escrow) an amount equal to all security
deposits which, as of the date of Close of Escrow, Seller is legally
required to ultimately refund to tenants under the Leases. A listing of
all such security deposits as of the date hereof is included in the rent
roll attached hereto as Exhibit "3".
17. Indemnifications.
a. Indemnification by Seller. Seller, for a period of three (3)
years following Close of Escrow, hereby indemnifies and agrees to defend
and hold harmless Buyer and any officer, director, member, manager,
employee or agent of Buyer, and their respective successors and assigns,
from and against any and all claims, expenses, costs, damages, losses and
liabilities (including reasonable attorneys' fees) which may at any time
be asserted against or suffered by any indemnitee or the Property, or any
part thereof, whether before or after the Closing Date, as a result of, on
account of or arising from (a) any breach of any covenant, representation,
warranty or agreement on the part of Seller made herein or in any
instrument or document delivered pursuant to this Agreement, and/or (b)
any obligation, claims, suit, liability, contract, agreement, debt or
encumbrance or other occurrence (other than encumbrances expressly
approved by Buyer) created, arising or accruing on or prior to the Closing
Date and relating to the Property or its operations.
b. Indemnification by Buyer. Buyer, for a period of three (3) years
following Close of Escrow, hereby indemnifies and agrees to defend and
hold harmless Seller and its partners and subsidiaries, and any officer,
director, employee or agent of any of them, and their respective
successors and assigns, from and against any and all claims, expenses,
costs, damages, losses and liabilities (including reasonable attorneys'
fees) which may at any time be asserted against or suffered by any
indemnitee as a result of, on
12
account of or arising from (a) any breach of any covenant, representation,
warranty or agreement on the part of Buyer made herein or in any
instrument or document delivered pursuant to this Agreement, and/or (b)
any obligation, claims, suit, liability, contract, agreement, debt or
encumbrance or other occurrence created, arising or accruing after the
Closing Date and relating to the Property or its operations.
18. Remedies/Default.
a. Default by Seller. If any warranty or representation of Seller
made herein shall prove to be materially untrue prior to Close of Escrow,
or if Seller shall fail to perform any of Seller's obligations under this
Agreement on or prior to the date for performance provided herein, then
Buyer shall be entitled to either (x) seek specific performance of this
Agreement or (y) terminate this Agreement by giving notice of such
termination to Seller and Escrow Agent, in which latter event the Escrow
and this Agreement shall be terminated for all purposes, Escrow Agent
shall return the Xxxxxxx Money Deposit to Buyer, and Escrow Agent shall
return all other funds, documents and other items held in escrow to the
Party that deposited same in escrow, and the Parties shall have no further
rights or obligations under this Agreement except that Buyer shall remain
liable for its obligations under Sections 7 and 9 hereof and Seller shall
remain liable for its obligations under Section 9 and such other
indemnification obligations as are specifically set forth herein.
b. Default by Buyer. If Buyer fails to consummate the purchase and
sale contemplated herein when required to do so pursuant to the provisions
of this Agreement (a "Buyer Default"), then Seller's sole and exclusive
remedy hereunder shall be to terminate this Agreement by giving notice of
such termination to Buyer and Escrow Agent, in which event the Escrow and
this Agreement shall be terminated for all purposes, whereupon Escrow
Agent shall pay the Xxxxxxx Money Deposit to Seller and shall return all
other funds, documents and other items held in escrow to the Party that
deposited same in escrow, and the Parties shall have no further rights or
obligations under this Agreement, except that Buyer shall remain liable
for its obligations under Sections 7 and 9 hereof and Seller shall remain
liable for its obligations under Section 9. Any sums paid to Seller under
the foregoing sentence shall be deemed to be liquidated damages paid to
Seller by reason of such Buyer Default, and the Parties hereby agree that
said amount is a reasonable forecast of just compensation for the harm
that may be caused to Seller as a result of such Buyer Default, and that
Seller's harm in the event of such a Buyer Default would be incapable of
accurate estimation or very difficult to accurately estimate. Seller
acknowledges and agrees that Seller shall not be entitled to any
additional or other damages or other remedies whatsoever in the event of a
default hereunder by Buyer, except as provided in Sections 7 and 9 hereof.
19. Risk of Loss. If all or any material portion of the Property is
stolen, misplaced, destroyed, damaged or condemned or if any condemnation
proceedings against all or any portion of the Property are commenced prior to
Close of Escrow, Buyer may, at its election, rescind this Agreement, in which
event, Escrow Agent shall return to Buyer the Xxxxxxx Money Deposit, Escrow
Agent shall return to Buyer all documents Buyer deposited with Escrow Agent in
connection with the Escrow, Escrow Agent shall return to Seller all documents
Seller deposited
13
with Escrow Agent in connection with the Escrow, and thereupon this Agreement
shall terminate and neither Party shall have any further right, obligation or
liability under this Agreement, except for those liabilities and obligations
that are specified herein to survive the termination or cancellation of this
Agreement.
20. Jurisdiction and Choice of Forum. The Parties acknowledge that any
action brought hereunder shall be brought in the Superior Court of Maricopa
County, Arizona.
21. Pending Litigation. There is currently pending a lawsuit styled NZ
Corporation v. Xxxxxx Xxxxxxx, XX 0000-000, Arizona Superior Court, Apache
County ("Xxxxxxx lawsuit"). Seller will continue to prosecute the Xxxxxxx
lawsuit to conclusion and pay all costs related thereto and indemnify buyer from
any liabilities arising from the lawsuit or any related claim, counterclaim or
defense. Seller and Buyer acknowledge that an area of land at what is known as
the "Milky Ranch House in Section 19" is not being conveyed to Seller at this
time as a result of the Xxxxxxx lawsuit (the "Section 19 Property"). If Seller
prevails in the Xxxxxxx lawsuit, Seller will convey any portion of the Section
19 Property not previously conveyed to Buyer. Seller shall have sole authority
to prosecute, settle, compromise or otherwise dispose of any claim, defense or
counterclaim in the Xxxxxxx lawsuit in any manner it deems necessary in its sole
judgment (but Seller shall act in good faith and not take any such action in an
attempt to avoid Seller's obligations to prosecute the Xxxxxxx lawsuit);
however, Seller shall not agree to any settlement or compromise that gives
Xxxxxxx any ownership or rights in any part of the Section 19 Property or an
interest in any grazing leases without Buyer's prior written consent. Buyer
shall not unreasonably withhold its consent if the settlement or compromise
involves granting Xxxxxxx a lease of two years or less on all or any portion of
the Section 19 Property. Buyer may give or withhold its consent, in its sole and
absolute judgment and discretion, for any settlement or compromise that grants
Xxxxxxx any greater interest in the Section 19 Property or the grazing leases.
22. License for Use of Certain Intellectual Property Rights. The parties
acknowledge that at Close of Escrow, Buyer shall provide a license to Seller in
the form of Exhibit 5 attached hereto and by this reference incorporated herein
for the right to use the names New Mexico and Arizona Land Company, NZU, NZ
Corporation, NZ Development and such books and records previously owned by said
NZ entities to permit Seller to continue to wind down its business. The term of
such selections shall be for five (5) years and may be extended, from time to
time, at the option of Seller as may be necessary to wind down its affairs.
23. General. Except to the extent inconsistent with the express language
of the foregoing provisions of this Agreement, the general provisions set forth
in this Section 23 shall govern the interpretation, application, construction
and enforcement of this Agreement:
a. SURVIVAL OF REPRESENTATIONS, WARRANTIES, AND INDEMNITIES. All
representations and warranties contained in this Agreement (and in any
certificate or other instrument delivered by or on behalf of any Party
pursuant hereto or in connection with the transactions contemplated
hereby) are true in all material respects on and as of the date so made
and will be true in all material respects on and as of the date on which
the transaction contemplated hereby is closed (except to the extent
expressly made as of a particular date certain) and will survive such
Closing Date for a period of one (1) year.
14
If, prior to the Close of Escrow, either Party receives notice or obtains
actual knowledge of any information that indicates any of the
representations and warranties contained in this Agreement are untrue,
then such Party shall promptly advise the other Party in writing of such
notice or knowledge. All indemnities contained in this Agreement shall
survive the Closing Date.
b. NOTICES. All notices shall be: (i) delivered in person; (ii) sent
by telecopy; or (iii) mailed, postage prepaid, either by certified or
registered mail, return receipt requested or by overnight express carrier,
addressed in each case as follows:
If to Seller: NZ Corporation
Attn: Xxxxxx X. Xxxxxx
000 X. 00xx Xxxxxx
Xxxxx 000
Xxxxxxx, XX 00000
Phone No. 000-000-0000
Fax No. 000-000-0000
With a copy to: X. Xxxxxxx Xxxxx
The Xxxxxxxx Law Firm
0000 Xxxxx Xxxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, XX 00000
Phone No. 000-000-0000
Fax No. 000-000-0000
If to Buyer: c/o Xxxxxx X. Xxxxxxx
000 X. Xxxxxxx
Xxxxxxx, XX 00000
Phone No. 000-000-0000
Fax No. 000-000-0000
With a copy to: Xxxx X. Xxxxxxxxx, Esq.
Xxxx X. Xxxxxxxxx, PLC
0000 X. Xxxxx
Xxxx, XX 00000-0000
Phone No. 000-000-0000
Fax No. 000-000-0000
All notices and documents shall be deemed received and effective: (i) if
delivered in person, on the day delivered; (ii) if sent by telecopy, on
the day sent if a business day, or if such day is not a business day, then
on the next business day; (iii) if sent by overnight express carrier, on
the next business day immediately following the day sent; or (iv) if sent
by registered or certified mail, on the second business day following the
day sent.
c. SEVERABILITY. The provisions of this Agreement are severable. As
such, the invalidity, in whole or in part, of any provision of this
Agreement shall not affect the
15
validity or enforceability of any other provision of this Agreement. If
any clause or provision of this Agreement is determined to be illegal,
invalid, or unenforceable under any present or future law, such clause or
provision shall be ineffective, but the remaining provisions of the
Agreement will not be affected and shall be construed in the broadest
manner to effectuate the purposes of this Agreement. Further, the Parties
agree to replace any void or unenforceable provision of this Agreement
with a valid and enforceable provision which will achieve, to the extent
possible, the economic, business and other purposes of the void or
unenforceable provision.
d. ADDITIONAL ACTS AND DOCUMENTS. Each Party hereto agrees to do all
such things and take all such actions, and to make, execute and deliver
such other documents and instruments, as shall be reasonably requested to
carry out the provisions, intent and purpose of this Agreement. Each Party
hereto expressly agrees to deal in good faith with the other in carrying
out the provisions, intent and purpose of this Agreement. The provisions
of this paragraph shall survive Close of Escrow. The Property includes all
of Seller's right, title and interest in and to all property and rights
appurtenant to the Property and necessary for the operation, use and/or
development of the Property, including, without limitation, all contingent
or future rights and interests. If following the Close of Escrow, any such
rights have not been conveyed to Buyer, Seller shall, upon request,
immediately execute all documents the parties deem necessary or desirable
to convey, and to evidence the conveyance of, such rights to Buyer.
e. FURTHER ASSURANCES REGARDING ESCROW. The Parties agree to give
such joint instructions to the Escrow Agent as shall be necessary to
effectuate the applicable express provisions of this Agreement.
f. ATTORNEYS' FEES. In the event action is taken by any Party to
this Agreement to enforce the terms of this Agreement, the prevailing
Party shall be entitled to recover reimbursement for reasonable attorneys'
fees, court, arbitration or similar costs, costs of investigation and
other related expenses incurred in connection therewith.
g. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the Parties hereto, and their respective
successors in interest and assigns, but in no event shall any Party be
relieved of its obligations hereunder without the express written consent
of each other Party.
h. COUNTERPARTS; FAX SIGNATURES. This Agreement may be executed in
any number of counterparts, all such counterparts shall be deemed to
constitute one and the same instrument, and each of said counterparts
shall be deemed an original hereof. The executed counterpart signature
pages of this Agreement may be combined to create one original of this
Agreement. Fax copies of signatures shall be binding on the parties as
original signatures.
i. TIME. Time is of the essence of this Agreement and each and every
provision hereof. Any extension of time granted for the performance of any
duty under this Agreement shall not be considered an extension of time for
the performance of any other duty under this Agreement.
16
j. WAIVER. Failure of any Party to exercise any right or option
arising out of a breach of this Agreement shall not be deemed a waiver of
any right or option with respect to any subsequent or different breach, or
the continuance of any existing breach.
k. INTEGRATION CLAUSE; ORAL MODIFICATION. This Agreement represents
the entire agreement of the Parties with respect to the subject matter
hereof, and all agreements entered into prior hereto with respect to the
subject matter hereof are revoked and superseded by this Agreement, and no
representations, warranties, inducements or oral agreements have been made
by any of the Parties except as expressly set forth herein, or in other
contemporaneous written agreements. This Agreement may not be changed,
modified or rescinded except in writing, signed by all Parties hereto, and
any attempt at oral modification of this Agreement shall be void and of no
effect.
l. CAPTIONS. Captions and section headings used herein are for
convenience only and are not a part of this Agreement and shall not be
deemed to limit or alter any provisions hereof and shall not be deemed
relevant in construing this Agreement.
m. GOVERNING LAW. This Agreement shall be deemed to be made under,
and shall be construed in accordance with and shall be governed by, the
laws of the State of Arizona, applicable to contracts executed within and
wholly performable within such State.
n. INTERPRETATIONS. To the extent permitted by the context in which
used, (i) words in the singular number shall include the plural, words in
the masculine gender shall include the feminine and neuter, and vice
versa, and (ii) references to "persons" or "parties" in this Agreement
shall be deemed to refer to natural persons, corporations, general
partnerships, limited partnerships, trusts and all other entities.
o. SPECIFIC PERFORMANCE. Seller acknowledges that the remedy of
specific performance shall be available and proper in the event Seller
fails or refuses to perform its duties hereunder, and that the remedy of
money damages is inadequate.
p. EXHIBITS. Any Exhibit attached hereto shall be deemed to have
been incorporated herein by this reference, with the same force and effect
as if fully set forth in the body hereof.
q. BUSINESS DAY; TIME FOR PERFORMANCE. Any reference in this
Agreement to "business day" shall refer to a Monday, Tuesday, Wednesday,
Thursday or Friday on which a majority of the banks (by number) having
branch offices in Phoenix, Arizona, are generally open for business in
that City. If the date on which an act specified to occur or be performed
under this Agreement shall not be a business day, or if the last day on
which an election, notice or other act can be made or accomplished under
this Agreement shall not be a business day, then the same shall be timely
if it occurs or is performed, made or accomplished on the next following
business day.
r. JOINT AND SEVERAL LIABILITY. The respective obligations and
liabilities of Seller and Buyer under this Agreement are and shall be
joint and several obligations and liabilities of the entities constituting
Seller and Buyer, respectively.
17
s. ADDITIONAL POST CLOSING MATTERS. Seller and Buyer acknowledge
that some of the conveyance and other obligations contained in this
Agreement may occur following the Close of Escrow. By proceeding with the
Close of Escrow, neither Seller nor Buyer shall be deemed to have waived
the fulfillment of any obligations by the other party under this Agreement
or any rights or remedies under this Agreement unless specifically waived
in writing. Seller shall deliver to Buyer copies of all documents
described in the exhibits and Title Reports as soon as reasonably
possible, but no late than thirty (30) days following the Close of Escrow.
The parties further acknowledge that the Close of Escrow will occur with
some of the exhibits to this Agreement not yet completed and as to the
completed exhibits, without time for Buyer to review and approve the
exhibits. Following the Close of Escrow, Seller and Buyer shall cooperate
in good faith to approve and complete the exhibits in a form reasonably
acceptable to the parties.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
18
IN WITNESS WHEREOF, Buyer and Seller have executed this Agreement as of
March 29, 2002.
SELLER:
NZ CORPORATION,
an Arizona corporation
By: /s/ Xxxxxx X. Xxxxxx
------------------------------------
Name: Xxxxxx X. Xxxxxx
Its: Treasurer & CFO
NZU, INC., a New Mexico corporation
By: /s/ Xxxxxx X. Xxxxxx
------------------------------------
Name: Xxxxxx X. Xxxxxx
Its: Treasurer & CFO
NZ DEVELOPMENT CORPORATION,
an Arizona corporation
By: /s/ Xxxxxx X. Xxxxxx
------------------------------------
Name: Xxxxxx X. Xxxxxx
Its: Treasurer & CFO
LIPID SCIENCES, INC.,
an Arizona corporation
By: /s/ Xxxxx Xxxxxxxx
------------------------------------
Name: Xxxxx Xxxxxxxx
Its: Chief Financial Officer
"SELLER"
19
BUYER:
NZ TRUST, LLC, an Arizona limited liability
company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
NZ SNOWFLAKE, LLC, an Arizona limited liability
company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
NZ MILKY RANCH, LLC, an Arizona limited liability
company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
NZ SILVER CREEK, LLC, an Arizona limited liability
company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
20
NZ XXXXXX CITY, LLC, an Arizona limited
liability company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
NZ NEW MEXICO LAND, LLC, an Arizona limited
liability company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
NZ URANIUM, LLC, an Arizona limited liability
company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
NZ TRAVERTINE, LLC, an Arizona limited liability
company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
21
NZ OIL AND GAS, LLC, an Arizona limited liability
company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
NZ MINERALS, LLC, an Arizona limited liability
company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
NZ HISTORY AND ARTIFACTS, LLC, an Arizona limited
liability company
By: /s/ Xxxxxx X. Xxxxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxxxx
Its: Manager
"BUYER"
22
LIST OF EXHIBITS
Exhibits X-0, X-0
X-0, X-0 and A-5: Legal Description of Land
Exhibit C: Mineral Rights
Exhibit D: Leases
Exhibit E: Exclusive Sales Agency Agreement
Exhibit F: Uranium Rights
Exhibit G: Seller's Intellectual Property
Exhibit H: Oil and Gas Interests
Exhibit 1-A Promissory Note
Exhibit 1-B Deed of Trust
Exhibit 1-C Security Agreement
Exhibit 1-D Collateral Assignment and UCC-1
23
EXHIBIT A-1
LEGAL DESCRIPTION
NAVAJO COUNTY HOLDINGS AS OF MARCH 31, 2002
---------------------------------------------------------------------------------------
TITLE REPORT
TAX PARCEL # PARCEL# TWN RGE SECTION ACRES
------------ ------- --- --- ------- -----
000-00-000 7 00 00X 00X XX XXXX XXX. 14 0.74
103-61-001D-8 16 19N 16E 31 233.85
103-43-001A 0 00 00X 00X
W2NE4,E2SE4; 1 160.00
000-00-000 B 8 1 13N 20E 25 640.00
000-00-000 F 6 2 13N 21E NW4 31 166.48
000-00-000 D 0 0 00X 00X XX0 31 156.61
000-00-000 C 9 2 13N 21E SE4 31 156.67
202-05-001-B-0 2 13N 21E NE4 31 160.00
000-00-000 B 4 3 14N 21E E OF SILVER CRK 1 236.70
000-00-000 B 4 3 14N 21E E OF SILVER CRK 13 43.70
000-00-000 B 4 5 15N 21E 11 640.00
000-00-000 B 0 00 00X 00X GRAVEL PIT 27 42.47
000-00-000 7 00 00X 00X X0XX0,XX0,X0 14 491.06
000-00-000 4 13 18N 19E W2, 18 246.46
000-00-000 A 4 5 15N 21E 12 640.00
000-00-000 2 6 14N 22E 6 699.65
6 14N 22E 6 (54.30)
000-00-000 E 7 6 15N 22E 1 483.92
000-00-000 E 7 6 15N 22E 1 160.00
000-00-000 E 7 6 15N 22E 5 641.18
000-00-000 E 7 6 15N 22E 6 707.05
000-00-000 E 7 6 15N 22E 7 718.82
000-00-000 E 7 6 15N 22E 14 640.00
000-00-000 E 7 6 15N 22E E2, 15 320.00
000-00-000 E 7 6 15N 22E W2, 15 320.00
000-00-000 X 0 0 00X 00X X0, 17 320.00
24
000-00-000 E 7 6 15N 22E 18 178.14
000-00-000 E 7 6 15N 22E 19 176.84
000-00-000 E 7 6 15N 22E E OF SILVER CK 29 270.00
000-00-000 E 7 6 15N 22E E OF SILVER CK 30 271.72
000-00-000 3 6 15N 22E 3 640.48
000-00-000 3 6 15N 22E 10 640.00
000-00-000 3 6 15N 22E 11 640.00
000-00-000 0 6 15N 22E 13 640.00
110-09-001A 3 16N 22E 29 640.00
110-09-001C 0 00 00X 00X 19 631.36
110-09-001C 0 00 00X 00X 33 320.00
110-09-001C 0 00 00X 00X 33 320.00
110-09-001B 0 00 00X 00X 13 669.33
110-09-001B 0 00 00X 00X 23 640.00
110-09-001B 0 00 00X 00X 24 655.04
110-09-001B 0 00 00X 00X 25 640.00
110-09-001B 0 00 00X 00X 27 640.00
110-09-001B 0 00 00X 00X 31 630.82
110-09-001B 0 00 00X 00X 35 160.00
110-09-001B 0 00 00X 00X 35 480.00
110-05-001A 0 00 00X 00X 5 640.22
110-05-001A 0 00 00X 00X N2N2 9 160.00
110-05-001A 0 00 00X 00X 11 640.00
110-05-001A 0 00 00X 00X 13 640.00
110-05-001C 0 00 00X 00X 7 725.02
110-05-001C 9 10 15N 23E S2,S2N2 9 480.00
110-05-001C 0 00 00X 00X 17 640.00
110-05-001C 9 10 15N 23E 18 722.72
= = = = =
TOTAL ACRES 23,502.75
25
EXHIBIT A-2
LEGAL DESCRIPTION
APACHE COUNTY HOLDINGS AS XX XXXXX 00, 0000
XX
TAX PARCEL # TWN RGE SECTION ACRES GL # ACRES
------------ --- --- ------- ----- ---- -----
000-00-000 4 14N 24E 1 640.86 452 640.86
---------- ---------
TOTAL 640.86 640.86
========== =========
000-00-000 1 15N 24E 1 642.34 611 642.34
000-00-000 1 15N 24E 2 546.60 611
000-00-000 1 15N 24E 2 39.26 611C 585.86
000-00-000 1 15N 24E 3 29.69 611
000-00-000 1 15N 24E 3 11.00 611C 40.69
000-00-000 1 15N 24E 11 78.20 611 78.20
000-00-000 1 15N 24E 12 160.00 611
000-00-000 1 15N 24E 12 22.00 611C
000-00-000 1 15N 24E 12 453.30 611A 635.30
000-00-000 1 15N 24E 13 160.08 611A 160.08
---------- ---------
TOTAL 2,142.47 2,142.47
========== =========
000-00-000 4 16N 24E 1 568.48 603 568.48
000-00-000 4 00X 00X X0, 3 297.03 603 297.03
000-00-000 4 00X 00X X0, 10 320.00 603 320.00
000-00-000 4 16N 24E 11 640.00 603 640.00
000-00-000 4 16N 24E 12 640.00 603 640.00
000-00-000 4 16N 24E 13 640.00 603 640.00
000-00-000 4 16N 24E 15 640.00 611 640.00
000-00-000 4 16N 24E 17 603.25 611 603.25
000-00-000 4 16N 24E 21 2.00 610
000-00-000 4 16N 24E 21 635.57 611 637.57
000-00-000 4 16N 24E 23 640.00 611 640.00
000-00-000 4 16N 24E 25 640.00 611 640.00
000-00-000 4 00X 00X X0, 26 320.00 611 320.00
000-00-000 4 16N 24E 27 640.00 611 640.00
000-00-000 4 16N 24E 35 640.00 611 640.00
---------- ---------
TOTAL 7,866.33 7,866.33
========== =========
000-00-000 0 17N 24E 1 645.38 603 645.38
000-00-000 0 00X 00X X0, 11 320.00 603 320.00
000-00-000 0 17N 24E 12 640.00 603 640.00
000-00-000 0 17N 24E 13 640.00 603 640.00
000-00-000 0 00X 00X X0, 14 320.00 603 320.00
000-00-000 0 00X 00X X0, 23 320.00 603 320.00
26
000-00-000 0 17N 24E ALL EXCPTSE4, 24 600.00 603 600.00
000-00-000 0 17N 24E 25 640.00 603 640.00
000-00-000 0 00X 00X X0, 26 320.00 603 320.00
000-00-000 0 17N 24E 34 640.00 603 640.00
000-00-000 0 17N 24E 35 640.00 603 640.00
---------- ---------
TOTAL 5,725.38 5,725.38
========== =========
000-00-000 3 15N 25E 3 641.74 611A 641.74
000-00-000 3 15N 25E 4 640.56 611A 640.56
000-00-000 3 15N 25E 5 639.50 611A 639.50
000-00-000 3 15N 25E 6 681.95 611A 681.95
000-00-000 3 15N 25E 7 684.56 611A 684.56
000-00-000 3 15N 25E 8 640.00 611A 640.00
000-00-000 3 15N 25E 9 520.00 611A
000-00-000 3 15N 25E 9 120.00 611B 640.00
000-00-000 3 15N 25E 17 160.00 611A
000-00-000 3 15N 25E 17 480.00 611B 640.00
000-00-000 3 15N 25E 18 528.68 611A
000-00-000 3 15N 25E 18 160.00 611B 688.68
---------- ---------
TOTAL 5,896.99 5,896.99
========== =========
000-00-000 16N 25E 26 640.00 640.00
---------- ---------
640.00 640.00
========== =========
000-00-000 16N 25E 34 640.00 640.00
---------- ---------
640.00 640.00
========== =========
000-00-000 7 16N 25E ALL 1 487.58 603 487.58
000-00-000 7 16N 25E ALL 3 511.34 603 511.34
000-00-000 7 16N 25E ALL 4 530.16 603 530.16
000-00-000 7 16N 25E ALL 5 542.56 603 542.56
000-00-000 7 00X 00X XX0,XX0XX0, 6 528.33 603 528.33
000-00-000 7 16N 25E 7 659.94 603 659.94
000-00-000 7 16N 25E 8 640.00 603 640.00
000-00-000 7 16N 25E 9 640.00 603 640.00
000-00-000 7 16N 25E 10 640.00 603 640.00
000-00-000 7 16N 25E 11 640.00 603 640.00
000-00-000 7 16N 25E 12 640.00 603 640.00
000-00-000 7 16N 25E 13 640.00 603 640.00
000-00-000 7 16N 25E 14 640.00 603 640.00
000-00-000 7 16N 25E 15 640.00 603 640.00
000-00-000 7 16N 25E 17 640.00 603 640.00
000-00-000 7 16N 25E 18 664.66 603 664.66
000-00-000 7 16N 25E 21 640.00 603 640.00
000-00-000 7 16N 25E 22 640.00 603 640.00
000-00-000 7 16N 25E 23 640.00 603 640.00
000-00-000 7 16N 25E 24 640.00 603 640.00
000-00-000 7 16N 25E 25 640.00 603 640.00
27
000-00-000 7 16N 25E 27 640.00 603 640.00
000-00-000 7 16N 25E 28 640.00 603 640.00
000-00-000 7 16N 25E 29 640.00 603 640.00
000-00-000 7 16N 25E 30 674.40 603 674.40
000-00-000 7 16N 25E 31 678.80 603 678.80
000-00-000 7 16N 25E 33 640.00 603 640.00
000-00-000 7 16N 25E 35 640.00 603 640.00
---------- ---------
17,437.77 17,437.77
---------- ---------
40,989.8 40,989.80
TOTAL ACRES
28
EXHIBIT A-3
LEGAL DESCRIPTION
Cibola County Holdings at January 1, 2002
TWN RGE Section Acres Owner Map Parcel #
6N 5W 11 540.00 NZ 2-026-035-264-264
6N 5W 15 640.00 NZ 2-027-034-297-264
6N 5W 21 640.00 NZ 2-028-033-297-292
6N 5W 27 640.00 NZ 2-027-032-264-264
6N 5W 33 640.00 NZ 2-028-031-396-264
6N 5W 35 640.00 NZ 2-026-031-105-297
--------
3,740.00
00
XXXXXXX X-0
XXXXX XXXXXXXXXXX
XXXX XXX XXXXXX, XXX XXXXXX
TWN RGE SEC ACRES TAX PARCEL NUMBER
--- --- --- ----- -----------------
23S 01E 28 190.00 PC03-17509
23S 01E 28 4.96
23S 01E 33 115.00 PC03-17530
--------
309.96
========
00
XXXXXXX X-0
XXXXX XXXXXXXXXXX
XXXXXXXX XXXXXX, XXX XXXXXX
TWN RGE Section Acres Tax Parcel #
--- --- ------- ----- ------------
17N 12W 33 SE4 160.00 2-070-097-132-132
------
00
XXXXXXX X
XXXXXXX XXXXXX
XXXXXX XXXXXX, XX
03/31/02
--------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
--- --- --- ----- --------
12N 24E 01 596.56
---------------------------------
12N 24E 03 572.32
---------------------------------
12N 24E 04 559.42
---------------------------------
12N 24E 05 545.60
---------------------------------
12N 24E 07 640.08
---------------------------------
12N 24E 08 320.00 W2W2.E2E2
---------------------------------
12N 24E 09 640.00
---------------------------------
12N 24E 10 640.00
---------------------------------
12N 24E 11 640.00
---------------------------------
12N 24E 12 640.00
---------------------------------
12N 24E 13 640.00
---------------------------------
12N 24E 15 640.00
---------------------------------
12N 24E 17 640.00
---------------------------------
12N 24E 19 634.38
---------------------------------
12N 24E 20 320.00 S2
---------------------------------
12N 24E 21 640.00
---------------------------------
12N 24E 29 640.00
---------------------------------
12N 24E 31 630.82
---------------------------------
12N 24E 33 640.00
---------------------------------
----------
11,219.18
==========
13N 24E 01 603.92
--------------------------------------
13N 24E 03 638.88
--------------------------------------
13N 24E 04 637.94
--------------------------------------
13N 24E 05 554.90
--------------------------------------
13N 24E 06 693.85
--------------------------------------
32
13N 24E 07 679.40
--------------------------------------
13N 24E 09 599.78
--------------------------------------
13N 24E 11 640.00
--------------------------------------
13N 24E 13 527.60
--------------------------------------
13N 24E 15 640.00
--------------------------------------
13N 24E 17 640.00
--------------------------------------
13N 24E 19 669.86
--------------------------------------
13N 24E 21 640.00
--------------------------------------
13N 24E 23 640.00
--------------------------------------
13N 24E 24 640.00
--------------------------------------
13N 24E 25 640.00
--------------------------------------
13N 24E 27 640.00
--------------------------------------
13N 24E 29 640.00
--------------------------------------
13N 24E 31 662.76
--------------------------------------
13N 24E 33 599.93
--------------------------------------
13N 24E 34 640.00
--------------------------------------
13N 24E 35 640.00
--------------------------------------
----------
13,908.82
==========
14N 24E 01 640.86
---------------------------------
14N 24E 03 2.01 N2
---------------------------------
14N 24E 04 239.53 N2
---------------------------------
14N 24E 05 490.29
---------------------------------
14N 24E 07 705.28
---------------------------------
14N 24E 08 640.00
---------------------------------
14N 24E 09 640.00
---------------------------------
14N 24E 10 442.30
---------------------------------
14N 24E 11 599.07
---------------------------------
14N 24E 13 640.00
---------------------------------
14N 24E 15 640.00
---------------------------------
14N 24E 17 640.00
---------------------------------
14N 24E 18 707.04
---------------------------------
14N 24E 19 668.91
---------------------------------
14N 24E 20 640.00
---------------------------------
14N 24E 21 640.00
---------------------------------
14N 24E 22 640.00
---------------------------------
14N 24E 23 640.00
---------------------------------
14N 24E 24 640.00
---------------------------------
14N 24E 25 640.00
---------------------------------
33
14N 24E 26 640.00
---------------------------------
14N 24E 27 640.00
---------------------------------
14N 24E 28 640.00
---------------------------------
14N 24E 29 602.64
---------------------------------
14N 24E 30 708.14
---------------------------------
14N 24E 31 706.56
---------------------------------
14N 24E 33 640.00
---------------------------------
14N 24E 35 640.00
---------------------------------
----------
16,752.63
==========
15N 24E 01 642.34
---------------------------------
15N 24E 02 643.26
---------------------------------
15N 24E 03 641.30
---------------------------------
15N 24E 04 639.10
---------------------------------
15N 24E 05 636.64
---------------------------------
15N 24E 06 677.90
---------------------------------
15N 24E 07 682.86
---------------------------------
15N 24E 08 640.00
---------------------------------
15N 24E 09 640.00
---------------------------------
15N 24E 10 640.00
---------------------------------
15N 24E 11 640.00
---------------------------------
15N 24E 12 640.00
---------------------------------
15N 24E 13 640.00
---------------------------------
15N 24E 14 640.00
---------------------------------
15N 24E 15 640.00
---------------------------------
15N 24E 17 640.00
---------------------------------
15N 24E 19 689.30
---------------------------------
15N 24E 21 640.00
---------------------------------
15N 24E 23 640.00
---------------------------------
15N 24E 24 640.00
---------------------------------
15N 24E 25 603.00
---------------------------------
15N 24E 26 603.90
---------------------------------
15N 24E 27 640.00
---------------------------------
15N 24E 28 640.00
---------------------------------
15N 24E 29 640.00
---------------------------------
15N 24E 31 49.00
---------------------------------
15N 24E 33 564.50
---------------------------------
15N 24E 34 519.92
---------------------------------
15N 24E 35 640.00
---------------------------------
34
----------
17,833.02
==========
16N 24E 01 568.48
---------------------------------
16N 24E 03 297.03
---------------------------------
16N 24E 10 320.00
---------------------------------
16N 24E 11 640.00
---------------------------------
16N 24E 12 640.00
---------------------------------
16N 24E 13 640.00
---------------------------------
16N 24E 15 640.00
---------------------------------
16N 24E 17 611.00
---------------------------------
16N 24E 19 11.30
---------------------------------
16N 24E 21 638.00
---------------------------------
16N 24E 23 640.00
---------------------------------
16N 24E 25 640.00
---------------------------------
16N 24E 26 320.00 W2
---------------------------------
16N 24E 26 160.00 E2
---------------------------------
16N 24E 27 640.00
---------------------------------
16N 24E 33 5.80
---------------------------------
16N 24E 35 640.00
---------------------------------
----------
8,051.61
==========
17N 24E 01 645.38
---------------------------------
17N 24E 11 320.00 E2
---------------------------------
17N 24E 12 640.00
---------------------------------
17N 24E 13 640.00
---------------------------------
17N 24E 14 320.00 E2
---------------------------------
17N 24E 23 320.00 E2
---------------------------------
17N 24E 24 600.00
---------------------------------
17N 24E 25 640.00
---------------------------------
17N 24E 26 320.00 E2
---------------------------------
17N 24E 34 640.00
---------------------------------
17N 24E 35 640.00
---------------------------------
----------
5,725.38
===========
12N 25E 05 613.36
---------------------------------
12N 25E 07 415.34
---------------------------------
12N 25E 09 640.00
---------------------------------
12N 25E 17 640.00
---------------------------------
35
----------
2,308.70
==========
13N 25E 01 642.08
--------------------------------------
13N 25E 03 644.80
--------------------------------------
13N 25E 05 641.50
--------------------------------------
13N 25E 07 696.30
--------------------------------------
13N 25E 09 640.00
--------------------------------------
13N 25E 11 640.00
--------------------------------------
13N 25E 12 603.99
--------------------------------------
13N 25E 13 640.00
--------------------------------------
13N 25E 14 620.00
--------------------------------------
13N 25E 15 620.00
--------------------------------------
13N 25E 17 640.00
--------------------------------------
13N 25E 18 320.00 E2
--------------------------------------
13N 25E 19 675.02
--------------------------------------
13N 25E 21 640.00
--------------------------------------
13N 25E 23 640.00
--------------------------------------
13N 25E 25 640.00
--------------------------------------
13N 25E 26 640.00
--------------------------------------
13N 25E 27 640.00
--------------------------------------
13N 25E 29 640.00
--------------------------------------
13N 25E 31 609.49
--------------------------------------
13N 25E 33 640.00
--------------------------------------
13N 25E 35 640.00
--------------------------------------
---------
13,753.18
=========
14N 25E 01 640.96
---------------------------------
14N 25E 03 642.20
---------------------------------
14N 25E 05 641.64
---------------------------------
14N 25E 06 120.81 NE4NW4,N2NE4
---------------------------------
14N 25E 07 706.86
---------------------------------
14N 25E 09 640.00
---------------------------------
14N 25E 11 640.00
---------------------------------
14N 25E 13 640.00
---------------------------------
14N 25E 14 640.00
---------------------------------
14N 25E 15 603.60
---------------------------------
14N 25E 17 640.00
---------------------------------
14N 25E 18 709.60
---------------------------------
14N 25E 19 712.00
--------------------------------------
14N 25E 21 640.00
--------------------------------------
36
14N 25E 22 640.00
--------------------------------------
14N 25E 23 640.00
--------------------------------------
14N 25E 25 603.50
--------------------------------------
14N 25E 26 640.00
--------------------------------------
14N 25E 27 640.00
--------------------------------------
14N 25E 28 480.00 NE4NW4,N2NE4
--------------------------------------
14N 25E 29 640.00
--------------------------------------
14N 25E 30 712.42
--------------------------------------
14N 25E 31 712.80
--------------------------------------
14N 25E 33 640.00
--------------------------------------
14N 25E 34 563.22
--------------------------------------
14N 25E 35 640.00
--------------------------------------
---------
16,169.61
=========
15N 25E 01 639.68
---------------------------------
15N 25E 03 641.74
---------------------------------
15N 25E 04 640.56
---------------------------------
15N 25E 05 639.50
---------------------------------
15N 25E 06 681.95
---------------------------------
15N 25E 07 684.56
---------------------------------
15N 25E 08 640.00
---------------------------------
15N 25E 09 640.00
---------------------------------
15N 25E 10 160.00 SE4
---------------------------------
15N 25E 11 640.00
---------------------------------
15N 25E 12 640.00
---------------------------------
15N 25E 13 640.00
---------------------------------
15N 25E 14 640.00
---------------------------------
15N 25E 15 640.00
---------------------------------
15N 25E 17 640.00
---------------------------------
15N 25E 18 688.98
---------------------------------
15N 25E 19 693.74
---------------------------------
15N 25E 20 640.00
---------------------------------
15N 25E 21 640.00
---------------------------------
15N 25E 22 640.00
---------------------------------
15N 25E 23 640.00
---------------------------------
15N 25E 24 640.00
---------------------------------
15N 25E 25 640.00
---------------------------------
15N 25E 27 640.00
---------------------------------
15N 25E 29 640.00
---------------------------------
15N 25E 30 657.66
---------------------------------
37
15N 25E 31 701.60
---------------------------------
15N 25E 32 280.00
---------------------------------
15N 25E 33 640.00
---------------------------------
15N 25E 34 320.00 N2
---------------------------------
15N 25E 35 640.00
---------------------------------
---------
18,949.97
=========
16N 25E 01 487.58
---------------------------------
16N 25E 03 511.34
---------------------------------
16N 25E 04 530.16
---------------------------------
16N 25E 05 542.56
---------------------------------
16N 25E 06 528.33
---------------------------------
16N 25E 07 659.94
---------------------------------
16N 25E 08 640.00
---------------------------------
16N 25E 09 640.00
---------------------------------
16N 25E 10 640.00
---------------------------------
16N 25E 11 640.00
---------------------------------
16N 25E 12 640.00
---------------------------------
16N 25E 13 640.00
---------------------------------
16N 25E 14 640.00
---------------------------------
16N 25E 15 640.00
---------------------------------
16N 25E 17 640.00
I --------------------------------------
16N 25E 18 664.66
--------------------------------------
16N 25E 19 669.28
--------------------------------------
16N 25E 21 640.00
--------------------------------------
16N 25E 22 640.00
--------------------------------------
16N 25E 23 640.00
--------------------------------------
16N 25E 24 640.00
--------------------------------------
16N 25E 25 640.00
--------------------------------------
16N 25E 27 640.00
--------------------------------------
16N 25E 29 640.00
--------------------------------------
16N 25E 30 674.40
--------------------------------------
16N 25E 31 678.80
--------------------------------------
16N 25E 33 640.00
--------------------------------------
16N 25E 35 640.00
--------------------------------------
----------
17,467.05
==========
----------
TOTAL 142,139.15
==========
38
NAVAJO COUNTY
03/31/2002
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
19N 15E 01 311.98
-----------------------------------------------------
19N 15E 11 160.00
-----------------------------------------------------
19N 15E 13 561.44
-----------------------------------------------------
19N 15E 14 0.74
-----------------------------------------------------
19N 15E 15 356.24
-----------------------------------------------------
19N 15E 23 267.00
-----------------------------------------------------
----------
1,657.40
==========
20N 15E 01 317.76
-----------------------------------------------------
----------
317.76
==========
21N 15E 01 640.48
-----------------------------------------------------
21N 15E 03 639.66
-----------------------------------------------------
21N 15E 11 640.00
-----------------------------------------------------
21N 15E 13 640.00
-----------------------------------------------------
21N 15E 15 640.00
-----------------------------------------------------
21N 15E 23 640.00
-----------------------------------------------------
21N 15E 25 640.00
-----------------------------------------------------
21N 15E 27 640.00
-----------------------------------------------------
21N 15E 35 640.00
-----------------------------------------------------
----------
5,760.14
==========
22N 15E 01 641.98
-----------------------------------------------------
22N 15E 03 641.40
-----------------------------------------------------
22N 15E 11 640.00
-----------------------------------------------------
22N 15E 13 640.00
-----------------------------------------------------
22N 15E 15 640.00
-----------------------------------------------------
22N 15E 23 640.00
-----------------------------------------------------
22N 15E 25 640.00
-----------------------------------------------------
39
22N 15E 27 640.00
-----------------------------------------------------
22N 15E 35 640.00
-----------------------------------------------------
----------
5,763.38
==========
23N 15E 01 641.18
-----------------------------------------------------
23N 15E 03 642.46
-----------------------------------------------------
23N 15E 11 640.00
-----------------------------------------------------
23N 15E 13 640.00
-----------------------------------------------------
23N 15E 15 640.00
-----------------------------------------------------
23N 15E 23 640.00
-----------------------------------------------------
23N 15E 25 640.00
-----------------------------------------------------
23N 15E 27 640.00
-----------------------------------------------------
23N 15E 35 640.00
-----------------------------------------------------
----------
5,763.64
==========
24N 15E 13 640.00
-----------------------------------------------------
24N 15E 15 640.00
-----------------------------------------------------
24N 15E 23 640.00
-----------------------------------------------------
24N 15E 25 640.00
-----------------------------------------------------
24N 15E 27 640.00
-----------------------------------------------------
24N 15E 35 640.00
-----------------------------------------------------
----------
3,840.00
==========
14N 16E 04 639.56
-----------------------------------------------------
14N 16E 06 679.99
-----------------------------------------------------
14N 16E 08 640.00
-----------------------------------------------------
14N 16E 10 640.00
-----------------------------------------------------
14N 16E 12 640.00
-----------------------------------------------------
----------
3,239.55
==========
15N 16E 1 357.32
-----------------------------------------------------
15N 16E 3 360.68
-----------------------------------------------------
15N 16E 5 104.27
-----------------------------------------------------
15N 16E 7 224.60
-----------------------------------------------------
15N 16E 9 320.00
-----------------------------------------------------
15N 16E 11 320.00
-----------------------------------------------------
15N 16E 12 318.72
-----------------------------------------------------
15N 16E 34 640.00
-----------------------------------------------------
----------
2,645.59
==========
-----------------------------------------------------
16N 16E 21 545.00
-----------------------------------------------------
40
16N 16E 22 211.55
-----------------------------------------------------
16N 16E 23 320.00
-----------------------------------------------------
16N 16E 24 334.23
-----------------------------------------------------
16N 16E 25 332.81
-----------------------------------------------------
16N 16E 27 320.00
-----------------------------------------------------
16N 16E 29 21.00
-----------------------------------------------------
16N 16E 33 320.00
-----------------------------------------------------
16N 16E 34 320.00
-----------------------------------------------------
16N 16E 35 320.00
-----------------------------------------------------
----------
3,044.59
==========
18N 16E 01 21.95
-----------------------------------------------------
-----------
21.95
===========
-----------------------------------------------------
19N 16E 05 447.44
-----------------------------------------------------
19N 16E 07 629.40
-----------------------------------------------------
19N 16E 12 3.00
-----------------------------------------------------
19N 16E 13 30.65
-----------------------------------------------------
19N 16E 17 640.00
-----------------------------------------------------
19N 16E 19 343.42
-----------------------------------------------------
19N 16E 23 29.57
-----------------------------------------------------
19N 16E 25 10.33
-----------------------------------------------------
19N 16E 27 400.00
-----------------------------------------------------
19N 16E 29 369.20
-----------------------------------------------------
19N 16E 31 619.94
-----------------------------------------------------
19N 16E 33 204.05
-----------------------------------------------------
19N 16E 35 64.82
-----------------------------------------------------
----------
3,791.82
==========
-----------------------------------------------------
20N 16E 31 80.29
-----------------------------------------------------
----------
80.29
==========
21N 16E 01 640.58
-----------------------------------------------------
21N 16E 03 640.82
-----------------------------------------------------
21N 16E 05 639.58
-----------------------------------------------------
21N 16E 07 639.52
-----------------------------------------------------
21N 16E 09 640.00
-----------------------------------------------------
21N 16E 11 640.00
-----------------------------------------------------
21N 16E 13 640.00
-----------------------------------------------------
21N 16E 15 640.00
-----------------------------------------------------
21N 16E 17 640.00
-----------------------------------------------------
41
21N 16E 19 640.70
-----------------------------------------------------
21N 16E 21 640.00
-----------------------------------------------------
21N 16E 23 640.00
-----------------------------------------------------
21N 16E 25 640.00
-----------------------------------------------------
21N 16E 27 640.00
-----------------------------------------------------
21N 16E 29 640.00
-----------------------------------------------------
21N 16E 31 641.19
-----------------------------------------------------
21N 16E 33 640.00
-----------------------------------------------------
21N 16E 35 640.00
-----------------------------------------------------
----------
11,522.39
==========
22N 16E 01 639.84
-----------------------------------------------------
22N 16E 03 640.94
-----------------------------------------------------
22N 16E 05 639.58
-----------------------------------------------------
22N 16E 07 635.10
-----------------------------------------------------
22N 16E 09 640.00
-----------------------------------------------------
22N 16E 11 640.00
-----------------------------------------------------
22N 16E 13 640.00
-----------------------------------------------------
22N 16E 15 640.00
-----------------------------------------------------
22N 16E 17 640.00
-----------------------------------------------------
22N 16E 19 638.78
-----------------------------------------------------
22N 16E 21 640.00
-----------------------------------------------------
22N 16E 23 640.00
-----------------------------------------------------
22N 16E 25 640.00
-----------------------------------------------------
22N 16E 27 640.00
-----------------------------------------------------
22N 16E 29 640.00
-----------------------------------------------------
22N 16E 31 642.52
-----------------------------------------------------
22N 16E 33 640.00
-----------------------------------------------------
22N 16E 35 640.00
-----------------------------------------------------
----------
11,516.76
==========
23N 16E 01 639.20
-----------------------------------------------------
23N 16E 03 640.70
-----------------------------------------------------
23N 16E 05 642.06
-----------------------------------------------------
23N 16E 07 633.10
-----------------------------------------------------
23N 16E 09 640.00
-----------------------------------------------------
23N 16E 11 640.00
-----------------------------------------------------
23N 16E 13 640.00
-----------------------------------------------------
23N 16E 15 640.00
-----------------------------------------------------
23N 16E 17 640.00
-----------------------------------------------------
23N 16E 19 634.30
-----------------------------------------------------
23N 16E 21 640.00
-----------------------------------------------------
23N 16E 23 640.00
-----------------------------------------------------
23N 16E 25 640.00
-----------------------------------------------------
23N 16E 27 640.00
-----------------------------------------------------
23N 16E 29 640.00
-----------------------------------------------------
42
23N 16E 31 632.38
-----------------------------------------------------
23N 16E 33 640.00
-----------------------------------------------------
23N 16E 35 640.00
-----------------------------------------------------
----------
11,501.74
==========
24N 16E 13 640.00
-----------------------------------------------------
24N 16E 15 640.00
-----------------------------------------------------
24N 16E 17 640.00
-----------------------------------------------------
24N 16E 19 637.22
-----------------------------------------------------
24N 16E 21 640.00
-----------------------------------------------------
24N 16E 23 640.00
-----------------------------------------------------
24N 16E 25 640.00
-----------------------------------------------------
24N 16E 27 640.00
-----------------------------------------------------
24N 16E 29 640.00
-----------------------------------------------------
24N 16E 31 633.22
-----------------------------------------------------
24N 16E 33 640.00
-----------------------------------------------------
24N 16E 35 640.00
-----------------------------------------------------
----------
7,670.44
==========
14N 17E 01 640.00
14N 17E 02 40.00 NWSE
14N 17E 03 640.00
14N 17E 05 640.00
14N 17E 06 705.35
14N 17E 07 640.00
14N 17E 09 640.00
-----------------------------------------------------
14N 17E 10 640.00
14N 17E 11 640.00
-----------------------------------------------------
14N 17E 14 640.00 Oil, gas, geo thermal & pet. wood reserved
14N 17E 17 640.00
-----------------------------------------------------
14N 17E 18 703.30
14N 17E 21 320.00
-----------------------------------------------------
14N 17E 29 320.00
-----------------------------------------------------
----------
7,848.65
==========
15N 17E 05 317.67
-----------------------------------------------------
15N 17E 07 351.32
-----------------------------------------------------
15N 17E 08 320.00
-----------------------------------------------------
15N 17E 09 320.00
-----------------------------------------------------
15N 17E 10 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 17E 12 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 17E 14 640.00 Oil, gas, geo thermal & pet. wood reserved
15N 17E 17 320.00
-----------------------------------------------------
15N 17E 19 353.04
-----------------------------------------------------
43
15N 17E 31 640.00
-----------------------------------------------------
----------
4,542.03
==========
16N 17E 19 348.83
-----------------------------------------------------
16N 17E 21 320.00
-----------------------------------------------------
16N 17E 22 320.00
-----------------------------------------------------
16N 17E 24 320.00
-----------------------------------------------------
16N 17E 23 320.00
16N 17E 26 320.00
-----------------------------------------------------
16N 17E 29 320.00
-----------------------------------------------------
16N 17E 31 349.74
-----------------------------------------------------
16N 17E 33 320.00
-----------------------------------------------------
16N 17E 34 320.00
-----------------------------------------------------
----------
3,258.57
==========
----------------------------------------------------
17N 17E 14 260.00 98 sold in Aztec Trade;E1/2,SW,W1/2NW
----------------------------------------------------
----------
260.00
==========
-----------------------------------------------------
18N 17E 05 72.61
-----------------------------------------------------
18N 17E 09 47.12
-----------------------------------------------------
18N 17E 11 158.20
-----------------------------------------------------
18N 17E 26 485.74
-----------------------------------------------------
----------
763.67
==========
-----------------------------------------------------
19N 17E 05 30.21
-----------------------------------------------------
19N 17E 07 31.95
-----------------------------------------------------
19N 17E 25 11.00
-----------------------------------------------------
19N 17E 31 29.64
-----------------------------------------------------
----------
102.80
==========
-----------------------------------------------------
20N 17E 13 33.93
-----------------------------------------------------
20N 17E 23 33.54
-----------------------------------------------------
20N 17E 27 32.38
-----------------------------------------------------
20N 17E 33 35.91
-----------------------------------------------------
----------
135.76
==========
21N 17E 01 641.66
-----------------------------------------------------
45
21N 17E 03 639.18
-----------------------------------------------------
21N 17E 05 639.10
-----------------------------------------------------
21N 17E 07 629.34
-----------------------------------------------------
21N 17E 09 640.00
-----------------------------------------------------
21N 17E 11 640.00
-----------------------------------------------------
21N 17E 13 640.00
-----------------------------------------------------
21N 17E 15 640.00
-----------------------------------------------------
21N 17E 17 640.00
-----------------------------------------------------
21N 17E 19 634.88
-----------------------------------------------------
21N 17E 21 640.00
-----------------------------------------------------
21N 17E 23 640.00
-----------------------------------------------------
21N 17E 25 640.00
-----------------------------------------------------
21N 17E 27 640.00
-----------------------------------------------------
21N 17E 29 640.00
-----------------------------------------------------
21N 17E 31 638.06
-----------------------------------------------------
21N 17E 33 640.00
-----------------------------------------------------
21N 17E 35 640.00
-----------------------------------------------------
----------
11,502.22
==========
22N 17E 01 641.28
-----------------------------------------------------
22N 17E 03 640.80
-----------------------------------------------------
22N 17E 05 640.34
-----------------------------------------------------
22N 17E 07 620.22
-----------------------------------------------------
22N 17E 09 640.00
-----------------------------------------------------
22N 17E 11 640.00
-----------------------------------------------------
22N 17E 13 640.00
-----------------------------------------------------
22N 17E 15 640.00
-----------------------------------------------------
22N 17E 17 640.00
-----------------------------------------------------
22N 17E 19 619.60
-----------------------------------------------------
22N 17E 21 640.00
-----------------------------------------------------
22N 17E 23 640.00
-----------------------------------------------------
22N 17E 25 640.00
-----------------------------------------------------
22N 17E 27 640.00
-----------------------------------------------------
22N 17E 29 640.00
-----------------------------------------------------
22N 17E 31 623.58
-----------------------------------------------------
22N 17E 33 640.00
-----------------------------------------------------
22N 17E 35 640.00
-----------------------------------------------------
----------
11,465.82
==========
23N 17E 01 640.90
-----------------------------------------------------
23N 17E 03 639.84
-----------------------------------------------------
23N 17E 05 640.02
-----------------------------------------------------
23N 17E 07 614.48
-----------------------------------------------------
23N 17E 09 640.00
-----------------------------------------------------
23N 17E 11 640.00
-----------------------------------------------------
45
23N 17E 13 640.00
-----------------------------------------------------
23N 17E 15 640.00
-----------------------------------------------------
23N 17E 17 640.00
-----------------------------------------------------
23N 17E 19 614.54
-----------------------------------------------------
23N 17E 21 640.00
-----------------------------------------------------
23N 17E 23 640.00
-----------------------------------------------------
23N 17E 25 640.00
-----------------------------------------------------
23N 17E 27 640.00
-----------------------------------------------------
23N 17E 29 640.00
-----------------------------------------------------
23N 17E 31 616.72
-----------------------------------------------------
23N 17E 33 640.00
-----------------------------------------------------
23N 17E 35 640.00
-----------------------------------------------------
----------
11,446.50
==========
24N 17E 13 640.00
-----------------------------------------------------
24N 17E 15 640.00
-----------------------------------------------------
24N 17E 17 640.00
-----------------------------------------------------
24N 17E 19 611.46
-----------------------------------------------------
24N 17E 21 640.00
-----------------------------------------------------
24N 17E 23 640.00
-----------------------------------------------------
24N 17E 25 640.00
-----------------------------------------------------
24N 17E 27 640.00
-----------------------------------------------------
24N 17E 29 640.00
-----------------------------------------------------
24N 17E 31 614.54
-----------------------------------------------------
24N 17E 33 640.00
-----------------------------------------------------
24N 17E 35 640.00
-----------------------------------------------------
----------
7,626.00
==========
14N 18E 02 80.00 N1/2SW
14N 18E 11 640.00
14N 18E 13 160.00
-----------------------------------------------------
----------
880.00
==========
15N 18E 04 642.98 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 18E 06 661.29 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 18E 08 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 18E 10 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 18E 12 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 18E 14 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 18E 18 666.22 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 18E 30 669.94
-----------------------------------------------------
----------
5,200.43
==========
46
16N 18E 04 734.50
----------------------------------------------------------
16N 18E 06 789.06
----------------------------------------------------------
16N 18E 08 640.00
----------------------------------------------------------
16N 18E 10 640.00
----------------------------------------------------------
16N 18E 12 640.00
----------------------------------------------------------
16N 18E 14 640.00
----------------------------------------------------------
16N 18E 18 669.26
----------------------------------------------------------
16N 18E 20 640.00
----------------------------------------------------------
16N 18E 22 640.00
----------------------------------------------------------
16N 18E 26 640.00
----------------------------------------------------------
16N 18E 28 640.00
----------------------------------------------------------
16N 18E 30 666.08
----------------------------------------------------------
16N 18E 34 640.00
----------------------------------------------------------
----------
8,618.90
==========
-----------------------------------------------------
17N 18E 18 636.80
-----------------------------------------------------
17N 18E 20 640.00
-----------------------------------------------------
17N 18E 26 640.00
-----------------------------------------------------
17N 18E 28 640.00
-----------------------------------------------------
17N 18E 30 638.16
-----------------------------------------------------
17N 18E 34 640.00
-----------------------------------------------------
----------
3,834.96
==========
-----------------------------------------------------
18N 18E 07 99.76
-----------------------------------------------------
18N 18E 08 34.30
-----------------------------------------------------
18N 18E 09 239.58
-----------------------------------------------------
18N 18E 11 320.27
-----------------------------------------------------
18N 18E 13 123.66
-----------------------------------------------------
18N 18E 14 560.00
-----------------------------------------------------
18N 18E 15 47.60
-----------------------------------------------------
----------
1,425.17
==========
-----------------------------------------------------
20N 18E 05 70.41
-----------------------------------------------------
20N 18E 07 221.99
-----------------------------------------------------
----------
292.40
==========
21N 18E 01 640.48
-----------------------------------------------------
21N 18E 03 641.62
-----------------------------------------------------
21N 18E 05 639.30
-----------------------------------------------------
21N 18E 07 626.58
-----------------------------------------------------
47
21N 18E 09 640.00
-----------------------------------------------------
21N 18E 11 640.00
-----------------------------------------------------
21N 18E 13 640.00
-----------------------------------------------------
21N 18E 15 640.00
-----------------------------------------------------
21N 18E 17 640.00
-----------------------------------------------------
21N 18E 19 632.32
-----------------------------------------------------
21N 18E 21 640.00
-----------------------------------------------------
21N 18E 23 640.00
-----------------------------------------------------
21N 18E 25 640.00
-----------------------------------------------------
21N 18E 27 640.00
-----------------------------------------------------
21N 18E 29 640.00
-----------------------------------------------------
21N 18E 31 638.08
-----------------------------------------------------
21N 18E 33 640.00
-----------------------------------------------------
21N 18E 35 640.00
-----------------------------------------------------
----------
11,498.38
==========
22N 18E 01 640.54
----------------------------------------------------------
22N 18E 03 641.78
----------------------------------------------------------
22N 18E 05 637.74
----------------------------------------------------------
22N 18E 07 618.32
----------------------------------------------------------
22N 18E 09 640.00
----------------------------------------------------------
22N 18E 11 640.00
----------------------------------------------------------
22N 18E 13 640.00
----------------------------------------------------------
22N 18E 15 640.00
----------------------------------------------------------
22N 18E 17 640.00
----------------------------------------------------------
22N 18E 19 621.60
----------------------------------------------------------
22N 18E 21 640.00
----------------------------------------------------------
22N 18E 23 640.00
----------------------------------------------------------
22N 18E 25 640.00
----------------------------------------------------------
22N 18E 27 640.00
----------------------------------------------------------
22N 18E 29 640.00
----------------------------------------------------------
22N 18E 31 623.42
----------------------------------------------------------
22N 18E 33 640.00
----------------------------------------------------------
22N 18E 35 640.00
----------------------------------------------------------
----------
11,463.40
==========
23N 18E 01 641.18
-----------------------------------------------------
23N 18E 03 638.18
-----------------------------------------------------
23N 18E 05 639.84
-----------------------------------------------------
23N 18E 07 614.54
-----------------------------------------------------
23N 18E 09 640.00
-----------------------------------------------------
23N 18E 11 640.00
-----------------------------------------------------
23N 18E 13 640.00
-----------------------------------------------------
23N 18E 15 640.00
-----------------------------------------------------
48
23N 18E 17 640.00
-----------------------------------------------------
23N 18E 19 617.12
-----------------------------------------------------
23N 18E 21 640.00
-----------------------------------------------------
23N 18E 23 640.00
-----------------------------------------------------
23N 18E 25 640.00
-----------------------------------------------------
23N 18E 27 640.00
-----------------------------------------------------
23N 18E 29 640.00
-----------------------------------------------------
23N 18E 31 618.14
-----------------------------------------------------
23N 18E 33 640.00
-----------------------------------------------------
23N 18E 35 640.00
-----------------------------------------------------
----------
11,449.00
==========
24N 18E 13 640.00
-----------------------------------------------------
24N 18E 15 640.00
-----------------------------------------------------
24N 18E 17 640.00
-----------------------------------------------------
24N 18E 19 615.84
-----------------------------------------------------
24N 18E 21 640.00
-----------------------------------------------------
24N 18E 23 640.00
-----------------------------------------------------
24N 18E 25 640.00
-----------------------------------------------------
24N 18E 27 640.00
-----------------------------------------------------
24N 18E 29 640.00
-----------------------------------------------------
24N 18E 31 611.90
-----------------------------------------------------
24N 18E 33 640.00
-----------------------------------------------------
24N 18E 35 640.00
-----------------------------------------------------
----------
7,627.74
==========
13N 19E 08 640.00
-----------------------------------------------------
13N 19E 21 640.00
-----------------------------------------------------
13N 19E 27 320.00 E1/2
-----------------------------------------------------
----------
1,600.00
==========
15N 06 635.82 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
15N 10 640.00
-----------------------------------------------------
15N 23 640.00
-----------------------------------------------------
15N 19E 25 640.00
-----------------------------------------------------
15N 19E 35 640.00
-----------------------------------------------------
----------
3,195.82
==========
16N 19E 08 640.00
-----------------------------------------------------
16N 19E 10 640.00
-----------------------------------------------------
49
16N 19E 12 640.00
-----------------------------------------------------
16N 19E 14 640.00
-----------------------------------------------------
16N 19E 18 635.48
-----------------------------------------------------
16N 19E 20 640.00
-----------------------------------------------------
16N 19E 22 640.00
-----------------------------------------------------
16N 19E 28 640.00
-----------------------------------------------------
16N 19E 30 629.56
-----------------------------------------------------
----------
5,745.04
==========
17N 19E 04 9.08
-----------------------------------------------------
17N 19E 06 663.83
-----------------------------------------------------
----------
672.91
==========
18N 19E 18 312.60
-----------------------------------------------------
18N 19E 20 480.00
-----------------------------------------------------
----------
792.60
==========
12N 20E 04 382.64
-----------------------------------------------------
----------
382.64
==========
13N 20E 10 640.00
-----------------------------------------------------
13N 20E 20 640.00
-----------------------------------------------------
13N 20E 22 320.00 S2
-----------------------------------------------------
13N 20E 24 580.35
-----------------------------------------------------
13N 20E 25 640.00
-----------------------------------------------------
13N 20E 26 640.00
-----------------------------------------------------
13N 20E 28 640.00
-----------------------------------------------------
13N 20E 30 639.64
-----------------------------------------------------
13N 20E 34 640.00
-----------------------------------------------------
----------
5,379.99
==========
14N 20E 04 480.00
14N 20E 05 640.00
14N 20E 07 640.00
-----------------------------------------------------
14N 20E 08 640.00
14N 20E 09 640.00
14N 20E 19 640.00
-----------------------------------------------------
14N 20E 20 640.00
-----------------------------------------------------
14N 20E 22 640.00
-----------------------------------------------------
50
14N 20E 26 640.00
-----------------------------------------------------
14N 20E 28 640.00
-----------------------------------------------------
14N 20E 30 321.04
14N 20E 31 640.00
-----------------------------------------------------
14N 20E 34 640.00
-----------------------------------------------------
----------
7,841.04
==========
15N 20E 04 639.72
-----------------------------------------------------
15N 20E 06 637.96
-----------------------------------------------------
15N 20E 08 640.00
-----------------------------------------------------
15N 20E 09 640.00
-----------------------------------------------------
15N 20E 17 640.00
-----------------------------------------------------
15N 20E 18 643.04
-----------------------------------------------------
15N 20E 19 640.00
-----------------------------------------------------
15N 20E 21 640.00
-----------------------------------------------------
15N 20E 29 640.00
-----------------------------------------------------
15N 20E 31 640.00
-----------------------------------------------------
15N 20E 33 640.00
-----------------------------------------------------
----------
7,040.72
==========
16N 20E 06 678.24
-----------------------------------------------------
16N 20E 10 640.00
-----------------------------------------------------
16N 20E 20 640.00
-----------------------------------------------------
16N 20E 30 634.58
-----------------------------------------------------
----------
2,592.82
==========
17N 20E 18 638.68
-----------------------------------------------------
17N 20E 20 640.00
-----------------------------------------------------
17N 20E 30 629.08
-----------------------------------------------------
----------
1,907.76
==========
12N 21E 04 320.00
-----------------------------------------------------
12N 21E 12 80.00
-----------------------------------------------------
----------
400.00
==========
13N 21E 31 640.00
-----------------------------------------------------
----------
640.00
==========
51
14N 21E 01 230.00
14N 21E 13 40.00
-----------------------------------------------------
----------
270.00
==========
15N 21E 12 640.00
-----------------------------------------------------
----------
640.00
==========
16N 21E 26 640.00
----------
640.00
==========
17N 21E 01 639.45 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 03 480.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 09 130.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 11 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 12 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 13 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 14 480.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 15 25.16 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 23 106.02 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 24 640.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
17N 21E 25 437.14 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
----------
4,857.77
==========
-----------------------------------------------------
18N 21E 35 285.00 Oil, gas, geo thermal & pet. wood reserved
-----------------------------------------------------
----------
285.00
==========
11N 22E 01 640.80
-----------------------------------------------------
11N 22E 03 330.13
-----------------------------------------------------
11N 22E 05 563.36
-----------------------------------------------------
11N 22E 08 640.00
-----------------------------------------------------
----------
2,174.29
==========
12N 22E 01 437.84
-----------------------------------------------------
12N 22E 03 415.20
-----------------------------------------------------
12N 22E 05 393.20
-----------------------------------------------------
12N 22E 07 1013.64
-----------------------------------------------------
12N 22E 09 640.00
-----------------------------------------------------
12N 22E 11 597.73
-----------------------------------------------------
12N 22E 15 640.00
-----------------------------------------------------
52
12N 22E 17 640.00
-----------------------------------------------------
12N 22E 19 854.16
-----------------------------------------------------
12N 22E 21 640.00
-----------------------------------------------------
12N 22E 23 640.00
-----------------------------------------------------
12N 22E 25 640.00
-----------------------------------------------------
12N 22E 27 640.00
-----------------------------------------------------
12N 22E 29 640.00
-----------------------------------------------------
12N 22E 31 772.07
-----------------------------------------------------
12N 22E 33 480.00
-----------------------------------------------------
12N 22E 35 640.00
-----------------------------------------------------
----------
10,723.84
==========
13N 22E 01 638.88
-----------------------------------------------------
13N 22E 03 640.18
-----------------------------------------------------
13N 22E 05 642.72
-----------------------------------------------------
13N 22E 06 615.07
-----------------------------------------------------
13N 22E 07 699.84
-----------------------------------------------------
13N 22E 09 640.00
-----------------------------------------------------
13N 22E 11 640.00
-----------------------------------------------------
13N 22E 12 640.00
-----------------------------------------------------
13N 22E 13 640.00
-----------------------------------------------------
13N 22E 14 640.00
-----------------------------------------------------
13N 22E 15 640.00
-----------------------------------------------------
13N 22E 17 640.00
-----------------------------------------------------
13N 22E 19 616.18
-----------------------------------------------------
13N 22E 21 640.00
-----------------------------------------------------
13N 22E 22 640.00 E2
-----------------------------------------------------
13N 22E 23 640.00
-----------------------------------------------------
13N 22E 24 640.00
-----------------------------------------------------
13N 22E 25 640.00
-----------------------------------------------------
13N 22E 26 640.00
-----------------------------------------------------
13N 22E 27 640.00
-----------------------------------------------------
13N 22E 29 640.00
-----------------------------------------------------
13N 22E 31 648.00
-----------------------------------------------------
13N 22E 33 640.00
-----------------------------------------------------
13N 22E 35 640.00
-----------------------------------------------------
----------
15,380.87
==========
14N 22E 01 677.92
14N 22E 03 667.58
14N 22E 04 661.28
-----------------------------------------------------
14N 22E 05 655.18
-----------------------------------------------------
14N 22E 06 699.65
-----------------------------------------------------
14N 22E 07 695.68
-----------------------------------------------------
14N 22E 08 640.00
-----------------------------------------------------
14N 22E 09 640.00
-----------------------------------------------------
53
14N 22E 11 640.00
-----------------------------------------------------
14N 22E 12 640.00
-----------------------------------------------------
14N 22E 13 640.00
-----------------------------------------------------
14N 22E 14 640.00
-----------------------------------------------------
14N 22E 15 640.00
-----------------------------------------------------
14N 22E 17 640.00
-----------------------------------------------------
14N 22E 18 590.45
-----------------------------------------------------
14N 22E 19 705.42
-----------------------------------------------------
14N 22E 20 640.00
-----------------------------------------------------
14N 22E 21 640.00
-----------------------------------------------------
14N 22E 22 600.00
-----------------------------------------------------
14N 22E 23 555.00
-----------------------------------------------------
14N 22E 24 640.00
-----------------------------------------------------
14N 22E 25 640.00
-----------------------------------------------------
14N 22E 26 640.00
-----------------------------------------------------
14N 22E 27 640.00
-----------------------------------------------------
14N 22E 28 640.00
-----------------------------------------------------
14N 22E 29 640.00
-----------------------------------------------------
14N 22E 30 709.28
-----------------------------------------------------
14N 22E 31 713.82
-----------------------------------------------------
14N 22E 33 640.00
-----------------------------------------------------
14N 22E 34 640.00
-----------------------------------------------------
14N 22E 35 640.00
-----------------------------------------------------
----------
20,091.26
==========
15N 22E 01 643.92
15N 22E 03 640.48
-----------------------------------------------------
15N 22E 05 641.18
-----------------------------------------------------
15N 22E 06 707.05
-----------------------------------------------------
15N 22E 07 718.82
-----------------------------------------------------
15N 22E 09 640.00
-----------------------------------------------------
15N 22E 10 640.00
-----------------------------------------------------
15N 22E 11 640.00
-----------------------------------------------------
15N 22E 13 640.00
-----------------------------------------------------
15N 22E 14 640.00
-----------------------------------------------------
15N 22E 15 640.00
-----------------------------------------------------
15N 22E 17 640.00
-----------------------------------------------------
15N 22E 20 640.00
-----------------------------------------------------
15N 22E 21 640.00
-----------------------------------------------------
15N 22E 22 640.00
-----------------------------------------------------
15N 22E 23 640.00
-----------------------------------------------------
15N 22E 24 640.00
-----------------------------------------------------
15N 22E 25 640.00
-----------------------------------------------------
15N 22E 26 640.00
-----------------------------------------------------
15N 22E 27 640.00
-----------------------------------------------------
15N 22E 28 640.00
-----------------------------------------------------
54
15N 22E 31 691.20
----------------------------------------------------------
15N 22E 33 640.00
----------------------------------------------------------
15N 22E 34 640.00
----------------------------------------------------------
15N 22E 35 640.00
----------------------------------------------------------
-----------
16,202.65
===========
16N 22E 01 637.20 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 22E 02 636.86 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 22E 03 637.41 N2,Oil, gas, geo thermal & pet. wood reserv
----------------------------------------------------------
16N 22E 04 638.08 N2,Oil, gas, geo thermal & pet. wood reserv
----------------------------------------------------------
16N 22E 05 638.30 N2,Oil, gas, geo thermal & pet. wood reserv
----------------------------------------------------------
16N 22E 07 631.94
----------------------------------------------------------
16N 22E 09 640.00
----------------------------------------------------------
16N 22E 10 640.00
----------------------------------------------------------
16N 22E 11 640.00
----------------------------------------------------------
16N 22E 12 657.94 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 22E 13 669.33
----------------------------------------------------------
16N 22E 14 640.00
----------------------------------------------------------
16N 22E 15 640.00
----------------------------------------------------------
16N 22E 19 631.36
----------------------------------------------------------
16N 22E 21 640.00
----------------------------------------------------------
16N 22E 22 640.00
----------------------------------------------------------
16N 22E 23 640.00
----------------------------------------------------------
16N 22E 24 655.04
----------------------------------------------------------
16N 22E 25 640.00
----------------------------------------------------------
16N 22E 27 640.00
----------------------------------------------------------
16N 22E 31 630.82
----------------------------------------------------------
16N 22E 33 640.00
----------------------------------------------------------
16N 22E 35 640.00
----------------------------------------------------------
-----------
14,744.28
===========
17N 22E 01 641.48 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 02 642.54 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 03 641.78 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 04 639.74 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 05 641.06 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 06 677.31 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 07 668.78 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 08 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 09 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 10 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 11 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 12 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 13 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
55
17N 22E 14 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 15 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 17 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 18 663.98 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 19 657.42 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 20 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 21 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 22 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 23 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 24 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 25 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 26 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 27 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 28 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 29 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 30 651.58 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 31 644.70 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 32 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 33 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 34 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 22E 35 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
-----------
21,890.37
===========
----------------------------------------------------------
18N 22E 13 620.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 14 241.63 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 15 66.47 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 21 320.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 22 479.85 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 23 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 24 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 25 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 26 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 27 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 28 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 29 435.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 31 597.52 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 32 480.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 33 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 34 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 22E 35 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
-------------------
9,000.47
===================
11N 23E 05 639.24
----------------------------------------------------------
56
-----------
639.24
===========
12N 23E 01 522.06
----------------------------------------------------------
12N 23E 03 494.58
----------------------------------------------------------
12N 23E 05 465.90
----------------------------------------------------------
12N 23E 07 654.98
----------------------------------------------------------
12N 23E 08 640.00
----------------------------------------------------------
12N 23E 09 640.00
----------------------------------------------------------
12N 23E 10 480.00
----------------------------------------------------------
12N 23E 11 640.00
----------------------------------------------------------
12N 23E 12 600.00
----------------------------------------------------------
12N 23E 13 640.00
----------------------------------------------------------
12N 23E 14 640.00
----------------------------------------------------------
12N 23E 15 640.00
----------------------------------------------------------
12N 23E 17 640.00
----------------------------------------------------------
12N 23E 18 618.06
----------------------------------------------------------
12N 23E 19 660.22
----------------------------------------------------------
12N 23E 21 640.00
----------------------------------------------------------
12N 23E 22 640.00
----------------------------------------------------------
12N 23E 23 600.00
----------------------------------------------------------
12N 23E 25 640.00
----------------------------------------------------------
12N 23E 26 640.00
----------------------------------------------------------
12N 23E 27 640.00
----------------------------------------------------------
12N 23E 29 640.00
----------------------------------------------------------
12N 23E 31 664.06
----------------------------------------------------------
12N 23E 33 640.00
----------------------------------------------------------
12N 23E 35 640.00
----------------------------------------------------------
-----------
15,359.86
===========
13N 23E 01 640.58
----------------------------------------------------------
13N 23E 03 642.46
----------------------------------------------------------
13N 23E 04 322.08
----------------------------------------------------------
13N 23E 05 641.92
----------------------------------------------------------
13N 23E 06 691.50
----------------------------------------------------------
13N 23E 07 680.78
----------------------------------------------------------
13N 23E 09 640.00
----------------------------------------------------------
13N 23E 11 640.00
----------------------------------------------------------
13N 23E 12 640.00
----------------------------------------------------------
13N 23E 13 640.00
----------------------------------------------------------
13N 23E 14 640.00
----------------------------------------------------------
13N 23E 15 640.00
----------------------------------------------------------
13N 23E 17 640.00
----------------------------------------------------------
13N 23E 18 673.18
----------------------------------------------------------
13N 23E 19 665.92
----------------------------------------------------------
13N 23E 20 640.00
----------------------------------------------------------
13N 23E 21 640.00
----------------------------------------------------------
13N 23E 22 240.00
----------------------------------------------------------
57
13N 23E 23 640.00
----------------------------------------------------------
13N 23E 24 640.00
----------------------------------------------------------
13N 23E 25 640.00
----------------------------------------------------------
13N 23E 27 640.00
----------------------------------------------------------
13N 23E 28 640.00
----------------------------------------------------------
13N 23E 29 640.00
----------------------------------------------------------
13N 23E 30 656.38
----------------------------------------------------------
13N 23E 31 645.66
----------------------------------------------------------
13N 23E 33 640.00
----------------------------------------------------------
13N 23E 34 400.00
----------------------------------------------------------
13N 23E 35 640.00
----------------------------------------------------------
-----------
17,780.46
===========
14N 23E 01 645.02
----------------------------------------------------------
14N 23E 03 658.60
----------------------------------------------------------
14N 23E 04 664.22
----------------------------------------------------------
14N 23E 05 669.42
----------------------------------------------------------
14N 23E 06 757.39
----------------------------------------------------------
14N 23E 07 713.76
----------------------------------------------------------
14N 23E 08 640.00
----------------------------------------------------------
14N 23E 09 640.00
----------------------------------------------------------
14N 23E 10 640.00
----------------------------------------------------------
14N 23E 11 640.00
----------------------------------------------------------
14N 23E 12 480.00
----------------------------------------------------------
14N 23E 13 640.00
----------------------------------------------------------
14N 23E 15 640.00
----------------------------------------------------------
14N 23E 17 630.00
----------------------------------------------------------
14N 23E 18 710.74
----------------------------------------------------------
14N 23E 19 705.94
----------------------------------------------------------
14N 23E 20 640.00
----------------------------------------------------------
14N 23E 21 640.00
----------------------------------------------------------
14N 23E 22 480.00
----------------------------------------------------------
14N 23E 23 640.00
----------------------------------------------------------
14N 23E 24 640.00
----------------------------------------------------------
14N 23E 25 640.00
----------------------------------------------------------
14N 23E 26 640.00
----------------------------------------------------------
14N 23E 27 640.00
----------------------------------------------------------
14N 23E 28 640.00
----------------------------------------------------------
14N 23E 29 640.00
----------------------------------------------------------
14N 23E 30 700.58
----------------------------------------------------------
14N 23E 31 697.18
----------------------------------------------------------
14N 23E 33 640.00
----------------------------------------------------------
14N 23E 35 640.00
----------------------------------------------------------
-----------
19,392.85
===========
15N 23E 03 321.69
----------------------------------------------------------
58
15N 23E 05 640.22
----------------------------------------------------------
15N 23E 07 725.02
----------------------------------------------------------
15N 23E 09 640.00
----------------------------------------------------------
15N 23E 11 640.00
----------------------------------------------------------
15N 23E 13 640.00
----------------------------------------------------------
15N 23E 15 640.00
----------------------------------------------------------
15N 23E 17 640.00
----------------------------------------------------------
15N 23E 18 722.72
----------------------------------------------------------
15N 23E 19 722.50
----------------------------------------------------------
15N 23E 20 640.00
----------------------------------------------------------
15N 23E 21 640.00
----------------------------------------------------------
15N 23E 22 640.00
----------------------------------------------------------
15N 23E 23 640.00
----------------------------------------------------------
15N 23E 25 640.00
----------------------------------------------------------
15N 23E 26 480.00
----------------------------------------------------------
15N 23E 27 640.00
----------------------------------------------------------
15N 23E 28 160.00
----------------------------------------------------------
15N 23E 29 640.00
----------------------------------------------------------
15N 23E 30 722.82
----------------------------------------------------------
15N 23E 31 720.62
----------------------------------------------------------
15N 23E 33 640.00
----------------------------------------------------------
15N 23E 34 240.00
----------------------------------------------------------
15N 23E 35 640.00
----------------------------------------------------------
-----------
14,415.59
===========
----------------------------------------------------------
16N 23E 03 321.29 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 23E 04 628.38 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 23E 05 631.90 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 23E 07 724.26 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 23E 08 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 23E 09 617.50 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 23E 10 307.70 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
16N 23E 15 624.30
----------------------------------------------------------
-----------
4,495.33
===========
17N 23E 01 645.50 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 03 641.32 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 05 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 07 639.66 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 08 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 09 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 11 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 13 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 14 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 15 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
59
17N 23E 17 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 18 637.20 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 19 637.62 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 21 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 22 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 23 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 24 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 25 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 26 600.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 27 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
17N 23E 29 640.00 Oil, gas, geo thermal & pet. wood reserved*
----------------------------------------------------------
17N 23E 31 638.72 Oil, gas, geo thermal & pet. wood reserved*
----------------------------------------------------------
17N 23E 33 640.00 Oil, gas, geo thermal & pet. wood reserved*
----------------------------------------------------------
-----------
14,680.02
===========
----------------------------------------------------------
18N 23E 07 125.00 Oil, gas, geo thermal & pet. wood reserved*
----------------------------------------------------------
18N 23E 09 10.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 11 10.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 13 590.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 15 580.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 17 590.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 18 633.26 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 19 633.36 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 20 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 21 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 23 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 25 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 26 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 27 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 28 320.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 29 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 30 633.86 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 31 634.28 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 32 480.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 33 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 34 320.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
18N 23E 35 640.00 Oil, gas, geo thermal & pet. wood reserved
----------------------------------------------------------
-----------
11,319.76
===========
-----------
TOTAL 452,555.08
===========
60
MOHAVE COUNTY, AZ
3/31/2002
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
--------------------------------------------------------------------------------
17N 18W 01 560.00
---------------
17N 18W 13 193.29
---------------
--------------------------
753.29
==========================
18N 18W 01 624.72
---------------
18N 18W 25 640.00
---------------
--------------------------
1,264.72
==========================
19N 18W 01 641.12
---------------
19N 18W 03 644.36
---------------
19N 18W 05 647.04
---------------
19N 18W 07 633.72
---------------
19N 18W 09 640.00
---------------
19N 18W 11 640.00
---------------
19N 18W 13 640.00
---------------
19N 18W 15 640.00
---------------
19N 18W 21 640.00
---------------
19N 18W 23 640.00
---------------
19N 18W 25 640.00
---------------
19N 18W 27 640.00
---------------
19N 18W 33 640.00
---------------
19N 18W 35 640.00
---------------
--------------------------
8,966.24
==========================
20N 18W 01 657.32
---------------
20N 18W 05 651.88
---------------
20N 18W 07 631.80
---------------
20N 18W 15 640.00
---------------
20N 18W 17 640.00
---------------
20N 18W 19 634.20
---------------
20N 18W 21 640.00
---------------
61
20N 18W 23 640.00
---------------
20N 18W 25 640.00
---------------
20N 18W 27 640.00
---------------
20N 18W 29 640.00
---------------
20N 18W 31 634.28
---------------
20N 18W 33 640.00
---------------
20N 18W 35 640.00
---------------
--------------------------
8,969.48
==========================
21N 18W 01 641.60
---------------
21N 18W 03 640.60
---------------
21N 18W 05 640.48
---------------
21N 18W 07 477.87
---------------
21N 18W 09 640.00
---------------
21N 18W 11 640.00
---------------
21N 18W 13 640.00
---------------
21N 18W 15 580.00
---------------
21N 18W 17 640.00
---------------
21N 18W 19 618.16
---------------
21N 18W 21 640.00
---------------
21N 18W 23 559.93
---------------
21N 18W 25 640.00
---------------
21N 18W 27 640.00
---------------
21N 18W 29 640.00
---------------
21N 18W 31 639.84
---------------
21N 18W 33 640.00
---------------
21N 18W 35 619.68
---------------
--------------------------
11,178.16
==========================
---------------
17N 19W 35 80.00
---------------
--------------------------
80.00
==========================
19N 19W 01 649.16
---------------
19N 19W 03 649.88
---------------
19N 19W 11 640.00
---------------
--------------------------
1,939.04
==========================
62
20N 19W 01 646.64
---------------
20N 19W 03 645.44
---------------
20N 19W 09 640.00
---------------
20N 19W 11 640.00
---------------
20N 19W 13 640.00
---------------
20N 19W 15 640.00
---------------
20N 19W 23 640.00
---------------
20N 19W 25 640.00
---------------
20N 19W 27 640.00
---------------
20N 19W 35 640.00
---------------
--------------------------
6,412.08
==========================
21N 19W 01 640.36
---------------
21N 19W 03 640.64
---------------
21N 19W 13 640.00
---------------
21N 19W 15 640.00
---------------
21N 19W 21 640.00
---------------
21N 19W 23 640.00
---------------
21N 19W 25 640.00
---------------
21N 19W 27 640.00
---------------
21N 19W 29 637.64
---------------
21N 19W 33 640.00
---------------
21N 19W 35 640.00
---------------
--------------------------
7,038.64
==========================
--------------------------
TOTAL 46,601.65
==========================
COCONINO COUNTY, AZ
--------------------------------------------------------------------------------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
--------------------------------------------------------------------------------
21N 07E 33 10.00_
----------------------
10.00
======================
63
19N 15E 07 35.81_
19N 15E 17 49.55_
----------------------
85.36
======================
21N 15E 05 640.42_
21N 15E 07 636.18_
21N 15E 09 640.00_
21N 15E 17 640.00_
21N 15E 19 637.34_
21N 15E 21 640.00_
21N 15E 29 640.00_
21N 15E 31 638.88_
21N 15E 33 640.00_
----------------------
5752.82
======================
22N 15E 05 638.54_
22N 15E 07 637.76_
22N 15E 09 640.00_
22N 15E 17 640.00_
22N 15E 19 639.58_
22N 15E 21 640.00_
22N 15E 29 640.00_
22N 15E 31 640.08_
22N 15E 33 640.00_
----------------------
5755.96
======================
23N 15E 05 638.30_
23N 15E 07 637.66_
23N 15E 09 640.00_
23N 15E 17 640.00_
23N 15E 19 640.13_
23N 15E 21 640.00_
23N 15E 29 640.00_
23N 15E 31 640.50_
23N 15E 33 640.00_
----------------------
5756.59
======================
24N 15E 17 640.00_
24N 15E 19 634.98_
24N 15E 21 640.00_
64
24N 15E 29 640.00_
24N 15E 31 635.42_
24N 15E 33 640.00_
-----------------------
3,830.40
=======================
-----------------------
TOTAL 21,191.13
=======================
XXXXXX COUNTY,
NEW MEXICO
3/31/2002
--------------------------------------------------------------------------------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
-----------------------------------------------------------------------------------------
01N 12W 3 480.54 Lots 1-4,S2N2SW4
--------------------------------------------
01N 12W 4 637.54 Lots 1-4,S2N2
--------------------------------------------
01N 12W 7 386.44 Lots 1-4,W2E2,NE4SE4,S2SE4NE4
--------------------------------------------
---------------
1,504.52
===============
03N 14W 22 640.00
--------------------------------------------
03N 14W 23 640.00
--------------------------------------------
03N 14W 35 640.00
--------------------------------------------
---------------
1,920.00
===============
02N 15W 10 640.00
--------------------------------------------
02N 15W 13 640.00
--------------------------------------------
02N 15W 14 640.00
--------------------------------------------
02N 15W 17 640.00 160 Ac. Oil & Gas only
--------------------------------------------
02N 15W 20 320.00 N2
--------------------------------------------
02N 15W 21 640.00
--------------------------------------------
02N 15W 23 640.00
--------------------------------------------
02N 15W 24 640.00
--------------------------------------------
65
02N 15W 25 640.00
--------------------------------------------
02N 15W 26 640.00
--------------------------------------------
02N 15W 28 480.00 N2,SW4
--------------------------------------------
02N 15W 29 280.00 SE4,S2SW4,NE4SW4
--------------------------------------------
02N 15W 30 121.06 Lots 1,3,NE4NW4
--------------------------------------------
02N 15W 34 320.00 E2
--------------------------------------------
02N 15W 35 640.00
--------------------------------------------
---------------
7,921.06
===============
---------------
Total Xxxxxx 11,345.58
===============
CIBOLA COUNTY, NM
3/31/2002
--------------------------------------------------------------------------------------------------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
--------------------------------------------------------------------------------------------------
05N 04W 24 480.00
---------------------------------------------
--------------
480.00
==============
06N 04W 01 636.80
06N 04W 03 624.56
06N 04W 05 629.52
06N 04W 07 622.64
06N 04W 09 640.00
06N 04W 11 640.00
06N 04W 13 640.00
06N 04W 15 640.00
06N 04W 17 640.00
06N 04W 19 619.20
06N 04W 21 640.00
06N 04W 23 640.00
06N 04W 25 640.00
06N 04W 27 640.00
06N 04W 29 640.00
06N 04W 31 622.60
66
06N 04W 33 640.00
06N 04W 35 640.00
-------------------------------------------------------
------------------
11,435.32
==================
07N 04W 01 640.40
-------------------------------------------------------
07N 04W 03 640.80
-------------------------------------------------------
07N 04W 05 639.06
-------------------------------------------------------
07N 04W 07 631.60
-------------------------------------------------------
07N 04W 09 640.00
-------------------------------------------------------
07N 04W 11 560.00
-------------------------------------------------------
07N 04W 13 640.00
-------------------------------------------------------
07N 04W 15 640.00
-------------------------------------------------------
07N 04W 17 640.00
-------------------------------------------------------
07N 04W 19 626.40
-------------------------------------------------------
07N 04W 21 640.00
-------------------------------------------------------
07N 04W 23 640.00
-------------------------------------------------------
07N 04W 25 640.00
-------------------------------------------------------
07N 04W 27 640.00
-------------------------------------------------------
07N 04W 29 640.00
-------------------------------------------------------
07N 04W 31 622.60
-------------------------------------------------------
07N 04W 33 640.00
-------------------------------------------------------
07N 04W 35 640.00
-------------------------------------------------------
------------------
11,400.86
==================
04N 05W 10 640.00
-------------------------------------------------------
------------------
640.00
==================
05N 05W 10 640.00
-------------------------------------------------------
------------------
640.00
==================
06N 05W 01 646.00
-------------------------------------------------------
06N 05W 03 651.84
-------------------------------------------------------
06N 05W 05 645.60
-------------------------------------------------------
67
06N 05W 07 641.60
-------------------------------------------------------
06N 05W 09 640.00
-------------------------------------------------------
06N 05W 11 640.00
-------------------------------------------------------
06N 05W 13 640.00
-------------------------------------------------------
06N 05W 15 640.00
-------------------------------------------------------
06N 05W 17 640.00
-------------------------------------------------------
06N 05W 19 639.60
-------------------------------------------------------
06N 05W 21 640.00
-------------------------------------------------------
06N 05W 23 640.00
-------------------------------------------------------
06N 05W 25 640.00
-------------------------------------------------------
06N 05W 27 640.00
-------------------------------------------------------
06N 05W 29 640.00
-------------------------------------------------------
06N 05W 31 647.92
-------------------------------------------------------
06N 05W 33 640.00
-------------------------------------------------------
06N 05W 35 640.00
-------------------------------------------------------
------------------
11,552.56
==================
07N 05W 01 644.00
-------------------------------------------------------
07N 05W 03 644.00
-------------------------------------------------------
07N 05W 05 646.40
-------------------------------------------------------
07N 05W 07 627.20
-------------------------------------------------------
07N 05W 09 640.00
-------------------------------------------------------
07N 05W 11 640.00
-------------------------------------------------------
07N 05W 13 640.00
-------------------------------------------------------
07N 05W 15 640.00
-------------------------------------------------------
07N 05W 17 640.00
-------------------------------------------------------
07N 05W 19 628.40
-------------------------------------------------------
07N 05W 21 640.00
-------------------------------------------------------
07N 05W 23 640.00
-------------------------------------------------------
07N 05W 25 640.00
-------------------------------------------------------
07N 05W 27 640.00
-------------------------------------------------------
07N 05W 29 640.00
-------------------------------------------------------
07N 05W 31 631.20
-------------------------------------------------------
07N 05W 33 640.00
-------------------------------------------------------
07N 05W 35 640.00
-------------------------------------------------------
------------------
11,501.20
==================
04N 06W 10 640.00 Oil & Gas only
-------------------------------------------------------
04N 06W 12 280.00 Oil & Gas only [NE4,N2NW4,SE4NW4]
-------------------------------------------------------
------------------
920.00
==================
06N 06W 01 638.40
-------------------------------------------------------
06N 06W 03 639.84
-------------------------------------------------------
68
06N 06W 05 642.00
-------------------------------------------------------
06N 06W 07 634.40
-------------------------------------------------------
06N 06W 09 640.00
-------------------------------------------------------
06N 06W 11 640.00
-------------------------------------------------------
06N 06W 13 640.00
-------------------------------------------------------
06N 06W 15 640.00
-------------------------------------------------------
06N 06W 17 640.00
-------------------------------------------------------
06N 06W 19 638.00
-------------------------------------------------------
06N 06W 21 640.00
-------------------------------------------------------
06N 06W 23 640.00
-------------------------------------------------------
06N 06W 25 640.00
-------------------------------------------------------
06N 06W 27 640.00
-------------------------------------------------------
06N 06W 29 640.00
-------------------------------------------------------
06N 06W 31 631.84
-------------------------------------------------------
06N 06W 33 640.00
-------------------------------------------------------
06N 06W 35 640.00
-------------------------------------------------------
------------------
11,504.48
==================
-------------------------------------------------------
07N 06W 01 640.48
-------------------------------------------------------
07N 06W 03 641.04
-------------------------------------------------------
07N 06W 05 641.20
-------------------------------------------------------
07N 06W 07 628.40
-------------------------------------------------------
07N 06W 09 640.00
-------------------------------------------------------
07N 06W 11 640.00
-------------------------------------------------------
07N 06W 13 640.00
-------------------------------------------------------
07N 06W 15 640.00
-------------------------------------------------------
07N 06W 17 640.00
-------------------------------------------------------
07N 06W 19 633.84
-------------------------------------------------------
07N 06W 21 640.00
-------------------------------------------------------
07N 06W 23 640.00
-------------------------------------------------------
07N 06W 25 640.00
-------------------------------------------------------
07N 06W 27 640.00
-------------------------------------------------------
07N 06W 29 640.00
-------------------------------------------------------
69
07N 06W 31 632.40
-------------------------------------------------------
07N 06W 33 640.00
-------------------------------------------------------
07N 06W 35 640.00
-------------------------------------------------------
------------------
11,497.36
==================
-------------------------------------------------------
08N 13W 03 630.88
-------------------------------------------------------
08N 13W 04 633.42
-------------------------------------------------------
08N 13W 05 636.36
-------------------------------------------------------
08N 13W 06 630.08
-------------------------------------------------------
08N 13W 07 629.16
-------------------------------------------------------
08N 13W 08 640.00
-------------------------------------------------------
08N 13W 09 640.00
-------------------------------------------------------
08N 13W 10 640.00
-------------------------------------------------------
08N 13W 17 640.00
-------------------------------------------------------
08N 13W 18 628.40
-------------------------------------------------------
08N 13W 19 629.00
-------------------------------------------------------
------------------
6,977.30
==================
09N 13W 06 638.57
-------------------------------------------------------
09N 13W 08 640.00
-------------------------------------------------------
09N 13W 10 640.00
-------------------------------------------------------
09N 13W 14 640.00
-------------------------------------------------------
09N 13W 18 636.64
-------------------------------------------------------
09N 13W 20 640.00
-------------------------------------------------------
09N 13W 30 637.76
-------------------------------------------------------
------------------
4,472.97
==================
06N 14W 01 640.40
-------------------------------------------------------
06N 14W 03 640.80
-------------------------------------------------------
06N 14W 05 641.36
-------------------------------------------------------
06N 14W 07 612.52
-------------------------------------------------------
06N 14W 09 640.00
-------------------------------------------------------
06N 14W 11 640.00
-------------------------------------------------------
06N 14W 13 640.00
-------------------------------------------------------
06N 14W 15 640.00
-------------------------------------------------------
06N 14W 17 640.00
-------------------------------------------------------
70
06N 14W 19 610.08
-------------------------------------------------------
06N 14W 21 640.00
-------------------------------------------------------
06N 14W 23 640.00
-------------------------------------------------------
06N 14W 25 640.00
-------------------------------------------------------
06N 14W 27 640.00
-------------------------------------------------------
06N 14W 29 640.00
-------------------------------------------------------
06N 14W 31 612.60
-------------------------------------------------------
06N 14W 33 640.00
-------------------------------------------------------
06N 14W 35 640.00
-------------------------------------------------------
------------------
11,437.76
==================
07N 14W 01 639.52
-------------------------------------------------------
07N 14W 03 641.68
-------------------------------------------------------
07N 14W 05 640.88
-------------------------------------------------------
07N 14W 07 624.08
-------------------------------------------------------
07N 14W 09 640.00
-------------------------------------------------------
07N 14W 11 640.00
-------------------------------------------------------
07N 14W 13 640.00
-------------------------------------------------------
07N 14W 15 640.00
-------------------------------------------------------
07N 14W 17 640.00
-------------------------------------------------------
07N 14W 19 619.56
-------------------------------------------------------
07N 14W 21 640.00
-------------------------------------------------------
07N 14W 23 640.00
-------------------------------------------------------
07N 14W 25 640.00
-------------------------------------------------------
07N 14W 27 640.00
-------------------------------------------------------
07N 14W 29 640.00
-------------------------------------------------------
07N 14W 31 614.48
-------------------------------------------------------
07N 14W 33 640.00
-------------------------------------------------------
07N 14W 35 640.00
-------------------------------------------------------
------------------
11,460.20
==================
08N 14W 01 633.00
-------------------------------------------------------
08N 14W 03 642.24
-------------------------------------------------------
08N 14W 05 651.08
-------------------------------------------------------
08N 14W 07 637.20
-------------------------------------------------------
08N 14W 09 640.00
-------------------------------------------------------
08N 14W 11 640.00
-------------------------------------------------------
08N 14W 13 640.00
-------------------------------------------------------
08N 14W 15 640.00
-------------------------------------------------------
71
08N 14W 17 640.00
-------------------------------------------------------
08N 14W 19 634.48
-------------------------------------------------------
08N 14W 21 640.00
-------------------------------------------------------
08N 14W 23 640.00
-------------------------------------------------------
08N 14W 25 640.00
-------------------------------------------------------
08N 14W 27 640.00
-------------------------------------------------------
08N 14W 29 640.00
-------------------------------------------------------
08N 14W 31 628.32
-------------------------------------------------------
08N 14W 33 640.00
-------------------------------------------------------
08N 14W 35 640.00
-------------------------------------------------------
------------------
11,506.32
==================
09N 14W 10 640.00
-------------------------------------------------------
09N 14W 12 640.00
-------------------------------------------------------
09N 14W 14 320.00 N2
-------------------------------------------------------
09N 14W 24 640.00
-------------------------------------------------------
09N 14W 26 480.00 E2E2,W2
-------------------------------------------------------
09N 14W 28 480.00 N2,SE4
-------------------------------------------------------
09N 14W 34 320.00 E2
-------------------------------------------------------
------------------
3,520.00
==================
10N 14W 22 640.00
-------------------------------------------------------
10N 14W 28 640.00
-------------------------------------------------------
10N 14W 34 640.00
-------------------------------------------------------
------------------
1,920.00
==================
07N 15W 01 640.84
-------------------------------------------------------
07N 15W 03 640.80
-------------------------------------------------------
07N 15W 05 640.00
-------------------------------------------------------
07N 15W 09 640.00
-------------------------------------------------------
07N 15W 11 640.00
-------------------------------------------------------
07N 15W 13 640.00
-------------------------------------------------------
07N 15W 15 640.00
-------------------------------------------------------
07N 15W 17 640.00
-------------------------------------------------------
07N 15W 21 640.00
-------------------------------------------------------
07N 15W 23 640.00
-------------------------------------------------------
07N 15W 25 640.00
-------------------------------------------------------
72
07N 15W 27 640.00
-------------------------------------------------------
07N 15W 29 640.00
-------------------------------------------------------
07N 15W 33 640.00
-------------------------------------------------------
07N 15W 35 640.00
-------------------------------------------------------
------------------
9,601.64
==================
08N 15W 01 657.12
-------------------------------------------------------
08N 15W 03 659.80
-------------------------------------------------------
08N 15W 05 664.52
-------------------------------------------------------
08N 15W 07 650.24
-------------------------------------------------------
08N 15W 09 640.00
-------------------------------------------------------
08N 15W 11 640.00
-------------------------------------------------------
08N 15W 13 640.00
-------------------------------------------------------
08N 15W 15 640.00
-------------------------------------------------------
08N 15W 17 640.00
-------------------------------------------------------
08N 15W 19 648.36
-------------------------------------------------------
08N 15W 21 640.00
-------------------------------------------------------
08N 15W 23 640.00
-------------------------------------------------------
08N 15W 25 640.00
-------------------------------------------------------
08N 15W 27 640.00
-------------------------------------------------------
08N 15W 29 640.00
-------------------------------------------------------
08N 15W 31 646.48
-------------------------------------------------------
08N 15W 33 640.00
-------------------------------------------------------
08N 15W 35 640.00
-------------------------------------------------------
------------------
11,606.52
==================
09N 15W 10 640.00
-------------------------------------------------------
09N 15W 12 640.00
-------------------------------------------------------
------------------
1,280.00
==================
------------------
TOTAL CIBOLA 145,354.49
==================
73
XXXXXXXX COUNTY, NM
------------------------------------------------------------------------------------------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
-------------------------------------------------------------------------------------------
14N 12W 01 640.68
------------------------------------
14N 12W 03 640.92
------------------------------------
14N 12W 05 640.40
------------------------------------
14N 12W 07 648.32
------------------------------------
14N 12W 09 640.00
------------------------------------
14N 12W 11 640.00
------------------------------------
14N 12W 13 640.00
------------------------------------
14N 12W 15 640.00
------------------------------------
14N 12W 17 640.00
------------------------------------
14N 12W 19 653.80
------------------------------------
14N 12W 23 640.00
------------------------------------
14N 12W 25 640.00
------------------------------------
14N 12W 27 640.00
------------------------------------
14N 12W 29 640.00
------------------------------------
14N 12W 31 658.04
------------------------------------
14N 12W 33 640.00
------------------------------------
14N 12W 35 640.00
------------------------------------
---------------------------
10,922.16
===========================
15N 12W 01 639.20
------------------------------------
15N 12W 03 636.24
------------------------------------
15N 12W 11 640.00
------------------------------------
15N 12W 13 640.00
------------------------------------
15N 12W 15 640.00
------------------------------------
15N 12W 17 640.00
------------------------------------
15N 12W 23 640.00
------------------------------------
15N 12W 33 640.00
------------------------------------
15N 12W 35 640.00
------------------------------------
---------------------------
5,755.44
===========================
16N 12W 01 325.32
------------------------------------
16N 12W 03 635.20
------------------------------------
16N 12W 05 622.00
------------------------------------
16N 12W 07 643.60
------------------------------------
16N 12W 09 640.00
------------------------------------
74
16N 12W 11 320.00 W2
------------------------------------
16N 12W 13 160.00 SW4
------------------------------------
16N 12W 15 480.00
------------------------------------
16N 12W 17 640.00
------------------------------------
16N 12W 19 643.28
------------------------------------
16N 12W 21 560.00
------------------------------------
16N 12W 23 640.00
------------------------------------
16N 12W 25 640.00
------------------------------------
16N 12W 27 640.00
------------------------------------
16N 12W 29 640.00
------------------------------------
16N 12W 33 640.00
------------------------------------
16N 12W 35 320.00
------------------------------------
---------------------------
9,189.40
===========================
17N 12W 01 640.36
------------------------------------
17N 12W 03 641.36
------------------------------------
17N 12W 05 640.48
------------------------------------
17N 12W 07 638.32
------------------------------------
17N 12W 09 640.00
------------------------------------
17N 12W 11 640.00
------------------------------------
17N 12W 13 640.00
------------------------------------
17N 12W 15 640.00
------------------------------------
17N 12W 17 640.00
------------------------------------
17N 12W 19 639.24
------------------------------------
17N 12W 21 320.00 N2
------------------------------------
17N 12W 23 640.00
------------------------------------
17N 12W 25 640.00
------------------------------------
17N 12W 29 320.00 W2
------------------------------------
17N 12W 31 640.32
------------------------------------
17N 12W 33 160.00 SE1/4
------------------------------------
17N 12W 35 480.00
------------------------------------
---------------------------
9,600.08
===========================
20N 12W 01 644.12
------------------------------------
20N 12W 03 643.32
------------------------------------
20N 12W 05 241.37 NE4;S2SE4
------------------------------------
20N 12W 07 633.04
------------------------------------
75
20N 12W 09 640.00
------------------------------------
20N 12W 11 640.00
------------------------------------
20N 12W 13 640.00
------------------------------------
20N 12W 15 640.00
------------------------------------
20N 12W 17 520.00 S2;S2NW4;E2NE4;SW4,NE4
------------------------------------
20N 12W 19 632.44
------------------------------------
20N 12W 21 640.00
------------------------------------
20N 12W 23 640.00
------------------------------------
20N 12W 25 640.00
------------------------------------
20N 12W 27 640.00
------------------------------------
20N 12W 29 640.00
------------------------------------
20N 12W 31 633.68
------------------------------------
20N 12W 33 640.00
------------------------------------
20N 12W 35 640.00
------------------------------------
---------------------------
10,987.97
===========================
14N 13W 01 640.80
------------------------------------
14N 13W 03 642.36
------------------------------------
14N 13W 05 640.60
------------------------------------
14N 13W 07 640.64
------------------------------------
14N 13W 09 640.00
------------------------------------
14N 13W 11 640.00
------------------------------------
14N 13W 13 640.00
------------------------------------
14N 13W 15 640.00
------------------------------------
14N 13W 17 640.00
------------------------------------
14N 13W 19 641.89
------------------------------------
14N 13W 21 640.00
------------------------------------
14N 13W 23 640.00
------------------------------------
14N 13W 25 640.00
------------------------------------
14N 13W 27 640.00
------------------------------------
14N 13W 29 640.00
------------------------------------
---------------------------
9,606.29
===========================
15N 13W 01 641.00
------------------------------------
15N 13W 03 641.24
------------------------------------
15N 13W 05 641.16
------------------------------------
15N 13W 09 640.00
------------------------------------
76
15N 13W 11 640.00
------------------------------------
15N 13W 13 640.00
------------------------------------
15N 13W 19 645.60
------------------------------------
15N 13W 21 640.00
------------------------------------
15N 13W 25 640.00
------------------------------------
15N 13W 27 640.00
------------------------------------
15N 13W 29 640.00
------------------------------------
15N 13W 31 650.00
------------------------------------
15N 13W 33 640.00
------------------------------------
15N 13W 35 640.00
------------------------------------
---------------------------
8,979.00
===========================
16N 13W 01 598.60
------------------------------------
16N 13W 03 593.20
------------------------------------
16N 13W 05 593.00
------------------------------------
16N 13W 07 631.61
------------------------------------
16N 13W 09 640.00
------------------------------------
16N 13W 11 640.00
------------------------------------
16N 13W 13 640.00
------------------------------------
16N 13W 15 640.00
------------------------------------
16N 13W 17 640.00
------------------------------------
16N 13W 19 632.04
------------------------------------
16N 13W 21 640.00
------------------------------------
16N 13W 23 640.00
------------------------------------
16N 13W 25 640.00
------------------------------------
16N 13W 27 640.00
------------------------------------
16N 13W 29 640.00
------------------------------------
16N 13W 31 628.00
------------------------------------
16N 13W 33 640.00
------------------------------------
16N 13W 35 640.00
------------------------------------
---------------------------
11,356.45
===========================
14N 14W 01 642.00
------------------------------------
14N 14W 03 645.40
------------------------------------
14N 14W 05 644.04
------------------------------------
14N 14W 09 640.00
------------------------------------
14N 14W 11 640.00
------------------------------------
77
14N 14W 13 640.00
------------------------------------
14N 14W 15 640.00
------------------------------------
14N 14W 23 640.00
------------------------------------
---------------------------
5,131.44
===========================
------------------------------------
15N 14W 03 640.12
------------------------------------
15N 14W 05 641.36
------------------------------------
15N 14W 07 479.68
------------------------------------
15N 14W 09 640.00
------------------------------------
15N 14W 13 640.00
------------------------------------
15N 14W 15 640.00
------------------------------------
15N 14W 17 640.00
------------------------------------
15N 14W 19 480.84
------------------------------------
15N 14W 21 320.00 W2
------------------------------------
15N 14W 25 640.00
------------------------------------
15N 14W 27 640.00
------------------------------------
15N 14W 29 640.00
------------------------------------
15N 14W 31 317.14 S2
------------------------------------
15N 14W 33 320.00 S2
------------------------------------
15N 14W 35 640.00
------------------------------------
---------------------------
8,319.14
===========================
16N 14W 01 593.00
------------------------------------
16N 14W 03 595.20
------------------------------------
16N 14W 05 591.20
------------------------------------
16N 14W 07 639.32
------------------------------------
16N 14W 09 640.00
------------------------------------
16N 14W 11 640.00
------------------------------------
16N 14W 13 640.00
------------------------------------
16N 14W 15 320.00 N2
------------------------------------
16N 14W 17 640.00
------------------------------------
16N 14W 19 639.72
------------------------------------
16N 14W 21 640.00
------------------------------------
16N 14W 23 640.00
------------------------------------
16N 14W 25 640.00
------------------------------------
16N 14W 27 640.00
------------------------------------
16N 14W 29 640.00
------------------------------------
78
16N 14W 31 320.44
------------------------------------
16N 14W 33 480.00 W2,NE4
------------------------------------
16N 14W 35 640.00
------------------------------------
---------------------------
10,578.88
===========================
15N 15W 01 640.60
------------------------------------
15N 15W 03 639.24
------------------------------------
15N 15W 05 640.96
------------------------------------
15N 15W 07 641.87
------------------------------------
15N 15W 09 640.00
------------------------------------
15N 15W 11 640.00
------------------------------------
15N 15W 13 640.00
------------------------------------
15N 15W 15 640.00
------------------------------------
15N 15W 17 487.30
------------------------------------
15N 15W 21 640.00
------------------------------------
15N 15W 23 640.00
------------------------------------
---------------------------
6,889.97
===========================
16N 15W 01 591.36
------------------------------------
16N 15W 03 593.00
------------------------------------
16N 15W 05 592.04
------------------------------------
16N 15W 07 635.72
------------------------------------
16N 15W 09 640.00
------------------------------------
16N 15W 11 640.00
------------------------------------
16N 15W 13 320.00 E2
------------------------------------
16N 15W 15 640.00
------------------------------------
16N 15W 17 480.00 N2,SE4
------------------------------------
16N 15W 19 478.08
------------------------------------
16N 15W 21 640.00
------------------------------------
16N 15W 23 640.00
------------------------------------
16N 15W 27 160.00 NW4
------------------------------------
16N 15W 29 640.00
------------------------------------
16N 15W 31 631.20
------------------------------------
16N 15W 33 640.00
------------------------------------
16N 15W 35 640.00
------------------------------------
---------------------------
9,601.40
===========================
79
11N 20W 24 320.00 W2
------------------------------------
---------------------------
320.00
===========================
---------------------------
Total XxXxxxxx 117,237.62
===========================
XXXX XXX COUNTY, NM
--------------------------------------------------------------------------------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
--------------------------------------------------------------------------------
23S 01E 28 190.00
23S 01E 28 4.96
--------------
23S 01E 33 115.00
--------------
-------------------------
Total Xxxx Xxx 309.96
=========================
SAN XXXX COUNTY, NM
--------------------------------------------------------------------------------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
--------------------------------------------------------------------------------
21N 12W 17 640.00
----------------
21N 12W 19 639.72
----------------
21N 12W 21 640.00
----------------
21N 12W 27 640.00
----------------
21N 12W 29 640.00
----------------
21N 12W 31 560.52
----------------
21N 12W 33 640.00
----------------
21N 12W 35 640.00
----------------
---------------------
Total San Xxxx 5,040.24
=====================
80
XXXXXXX COUNTY , NM
--------------------------------------------------------------------------------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
--------------------------------------------------------------------------------
04N 03W 24 480.00 S2,NE4
---------------------
480.00
=====================
03N 04W 04 318.58 Lots 3,4,S2NW4,SW4
--------------------------
03N 04W 22 640.00
--------------------------
03N 04W 24 320.00 E2
---------------------
1278.58
=====================
03N 06W 04 480.00 S2,S2N2
---------------------
480.00
=====================
03N 06W 04 160.00 NW4; Oil & Gas Only
---------------------
160.00
=====================
---------------------
Total Socorro 2,398.58
=====================
VALENCIA COUNTY, NM
--------------------------------------------------------------------------------
MINERAL
ACRES
TWN RGE SEC OWNED COMMENTS
--------------------------------------------------------------------------------
06N 01W 07 484.32
06N 01W 19 641.28
06N 01W 31 563.40 W2 & NE4 & W2SE4
----------------------------
1,689.00
============================
06N 02W 01 640.24
06N 02W 03 642.16
06N 02W 05 643.20
06N 02W 07 644.40
06N 02W 09 640.00
06N 02W 11 640.00
06N 02W 13 640.00
81
06N 02W 15 640.00
06N 02W 17 640.00
06N 02W 19 642.96
06N 02W 21 640.00
06N 02W 23 640.00
06N 02W 25 640.00
06N 02W 27 640.00
06N 02W 29 640.00
06N 02W 33 640.00
06N 02W 35 480.00 NW4 &S2
----------------------------
10,732.96
============================
06N 03W 01 637.92
06N 03W 03 635.60
06N 03W 05 636.32
06N 03W 07 639.92
06N 03W 09 640.00
06N 03W 11 640.00
06N 03W 13 640.00
06N 03W 15 640.00
06N 03W 17 640.00
06N 03W 19 640.08
06N 03W 21 640.00
06N 03W 23 640.00
06N 03W 25 640.00
06N 03W 27 640.00
06N 03W 29 640.00
06N 03W 31 646.24
06N 03W 33 640.00
06N 03W 35 640.00
----------------------------
11,516.08
============================
07N 02W 31 621.14
07N 02W 33 617.96
07N 02W 35 617.32
----------------------------
1,856.42
============================
07N 03W 03 633.41
07N 03W 05 642.24
07N 03W 07 635.05
82
07N 03W 09 640.00
07N 03W 15 637.36
07N 03W 17 640.00
07N 03W 19 633.04
07N 03W 21 640.00
07N 03W 27 635.36
07N 03W 29 640.00
07N 03W 31 636.40
07N 03W 33 640.00
07N 03W 35 622.56
----------------------------
8,275.42
============================
08N 03W 03 631.72
08N 03W 05 666.72
08N 03W 07 624.64
08N 03W 09 640.00
08N 03W 15 613.20
08N 03W 17 640.00
08N 03W 19 622.96
08N 03W 21 640.00
08N 03W 27 629.20
08N 03W 29 640.00
08N 03W 31 626.96
08N 03W 33 640.00
----------------------------
7,615.40
============================
----------------------------
Total Valencia 41,685.28
============================
83
EXHIBIT D
LEASES
NZ CORPORATION
SUMMARY OF GRAZING LEASE LEGAL DESCRIPTIONS ( AFTER HOPI SALE)
APACHE COUNTY, AZ
G\L # Leasee Twnshp Range Section Acreage
000 Xxxxxxx Xxxxxx\X Xxxxxxx 14N 24E 1, ALL 640.86
000 Xxxxxxx Xxxxxx\X Xxxxxxx 14N 25E 6, LOTS 1,2,3 120.00
----------------
760.86
000 Xxxxx Xxxxx 00X 00X 9, NE4 120.00
000 Xxxxx Xxxxx 00X 00X 13,S2, NE4 480.00
000 Xxxxx Xxxxx 00X 00X 14, SE4 160.00
000 Xxxxx Xxxxx 00X 00X 15 40.00
611 Xxxxx Plant 15N 25E 17, NE4, S2 480.00
000 Xxxxx Xxxxx 00X 00X 00,XX0 160.00
611 Xxxxx Plant 15N 25E 20 640.00
611 Xxxxx Plant 15N 25E 21 640.00
611 Xxxxx Plant 00X 00X 00, xxx XX0XX0, XX0XX0,XX0XX0 560.00
611 Xxxxx Plant 15N 25E 23 640.00
611 Xxxxx Plant 15N 25E 24 640.00
611 Xxxxx Plant 15N 25E 25 640.00
611 Xxxxx Plant 15N 25E 27 640.00
000 Xxxxx Xxxxx 00X 00X 00, XX xx XX000 42.56
611 Xxxxx Plant 15N 25E 34, N2 320.00
000 Xxxxx Xxxxx 00X 00X 35 640.00
----------------
6,842.56
000 Xxx & Xxxxx Xxxx 00X 00X 2 79.26
986 Xxx & Xxxxx Xxxx 15N 24E 3 591.00
986 Xxx & Xxxxx Xxxx 15N 24E 4 639.10
986 Xxx & Xxxxx Xxxx 15N 24E 5 636.64
986 Xxx & Xxxxx Xxxx 15N 24E 6 677.90
986 Xxx & Xxxxx Xxxx 15N 24E 7 682.86
986 Xxx & Xxxxx Xxxx 15N 24E 8 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 9 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 10 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 11 513.00
84
NZ CORPORATION
SUMMARY OF GRAZING LEASE LEGAL DESCRIPTIONS
APACHE COUNTY, AZ
G\L # Leasee Twnshp Range Section Acreage
986 Xxx & Xxxxx Xxxx 15N 24E 12 22.00
986 Xxx & Xxxxx Xxxx 15N 24E 13 400.00
986 Xxx & Xxxxx Xxxx 15N 24E 14 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 15 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 17 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 19 689.30
986 Xxx & Xxxxx Xxxx 15N 24E 21 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 23 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 24 639.90
986 Xxx & Xxxxx Xxxx 15N 24E 25 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 26 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 27 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 28 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 29 640.00
986 Xxx & Xxxxx Xxxx 15N 24E 35 640.00
986 Xxx & Xxxxx Xxxx 15N 25E 31 701.60
986 Xxx & Xxxxx Xxxx 15N 25E 32 221.53
986 Xxx & Xxxxx Xxxx 14N 25E 5 641.64
----------------
16,095.73
Xxxxxx Xxxxxxxxx 15N 24E 1 642.34
Xxxxxx Xxxxxxxxx 15N 24E 2 546.60
Xxxxxx Xxxxxxxxx 15N 24E 3; NE OF US 180 29.69
Xxxxxx Xxxxxxxxx 15N 24E 11 80.00
Xxxxxx Xxxxxxxxx 15N 24E 12 160.00
Xxxxxx Xxxxxxxxx 16N 24E 15 640.00
Xxxxxx Xxxxxxxxx 16N 24E 17;NE OF US 180 603.25
Xxxxxx Xxxxxxxxx 16N 24E 21;NE OF US 180 635.58
Xxxxxx Xxxxxxxxx 16N 24E 23 640.00
Xxxxxx Xxxxxxxxx 16N 24E 25 640.00
Xxxxxx Xxxxxxxxx 16N 24E 26;W2 320.00
Xxxxxx Xxxxxxxxx 16N 24E 27 640.00
Xxxxxx Xxxxxxxxx 16N 24E 33;NE OF US 180 5.20
Xxxxxx Xxxxxxxxx 16N 24E 35 640.00
----------------
6,222.66
85
NZ CORPORATION
SUMMARY OF GRAZING LEASE LEGAL DESCRIPTIONS
APACHE COUNTY, AZ
G\L # Leasee Twnshp Range Section Acreage
----------------
TOTAL APACHE COUNTY, AZ GRAZING ACRES 29,921.81
NZ CORPORATION
SUMMARY OF GRAZING LEASE LEGAL DESCRIPTIONS
CIBOLA COUNTY, NM
G\L # Leasee Twnshp Range Section Acreage
9410 Bierbros Development 6N 5W 11 540.00
9410 Bierbros Development 6N 5W 15 640.00
9410 Bierbros Development 6N 5W 21 640.00
9410 Bierbros Development 6N 5W 27 640.00
9410 Bierbros Development 6N 5W 33 640.00
9410 Bierbros Development 6N 5W 35 640.00
----------------
TOTAL CIBOLA COUNTY, NM GRAZING ACRES 3,740.00
NZ CORPORATION
SUMMARY OF GRAZING LEASE LEGAL DESCRIPTIONS
NAVAJO COUNTY, AZ
G\L # Leasee Twnshp Range Section Acreage
18; W2 exc 18.81 AND 13.75 XX
000 Xxxxxx Xxxxxxxx 00X 00X XX r.o.w. 246.46
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 1 643.92
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 3 640.48
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 10 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 11 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 13 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 14 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 15; E2 320.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 5 640.22
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 7 725.02
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 9 640.00
86
NZ CORPORATION
SUMMARY OF GRAZING LEASE LEGAL DESCRIPTIONS
NAVAJO COUNTY, AZ
G\L # Leasee Twnshp Range Section Acreage
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 11 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 13 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 17 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 18 722.72
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 19 722.50
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 20 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 21 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 22 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 23 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 29 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 13 669.33
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 23 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 24 655.04
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 25 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 27 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 33 640.00
000 X Xxx Xxxxxx\Xxx Xxxxx 00X 00X 35 640.00
----------------
17,259.23
9585 Xxxxxxx Xxxx 15N 22E 15;W2 320.00
000 Xxx X Xxx\Xxxxx Xxxxx 00X 00X 11 640.00
000 Xxx X Xxx\Xxxxx Xxxxx 00X 00X 12 640.00
000 Xxx X Xxx\Xxxxx Xxxxx 00X 00X 5 641.18
000 Xxx X Xxx\Xxxxx Xxxxx 00X 00X 6 707.05
000 Xxx X Xxx\Xxxxx Xxxxx 00X 00X 7 718.82
000 Xxx X Xxx\Xxxxx Xxxxx 00X 00X 17;W2 320.00
000 Xxx X Xxx\Xxxxx Xxxxx 00X 00X 19 631.36
000 Xxx X Xxx\Xxxxx Xxxxx 00X 00X 31 630.82
----------------
4,929.23
87
NZ CORPORATION
SUMMARY OF GRAZING LEASE LEGAL DESCRIPTIONS
NAVAJO COUNTY, AZ
G\L # Leasee Twnshp Range Section Acreage
474 J-P Cattle Co\Dee & Xxxxxxx 14N 22E 6 699.65
474 J-P Cattle Co\Dee & Xxxxxxx 15N 22E 22 640.00
474 J-P Cattle Co\Dee & Xxxxxxx 15N 22E 26 640.00
474 J-P Cattle Co\Dee & Xxxxxxx 00X 00X 00;X XX Xxxxxx Xxxxx 620.00
----------------
2,599.65
9901 Xxxxx Xxxxxx 15N 23E 25 640.00
474A Xxx Xxxxxxx INV 04/02 14N 21E 1; E of Silver Creek 160.00
476A Xxxx Xxxxx INV 05/02 14N 21E 13; E of Silver Creek 100.00
2000-1 A&J Xxxxxx INV 03/02 13N 20E 25 640.00
2000-1 A&J Xxxxxx INV 03/02 13N 21E 31 633.11
----------------
1,273.11
000 Xxxxxxx Xxxxxx\Xxxx Xxxxxxx 00X 00X 14;S2NE4, NW4,S2 491.06
----------------
491.06
----------------
TOTAL NAVAJO COUNTY, AZ GRAZING ACRES 28,018.74
================
ROYALTY AGREEMENTS
NAME TYPE COUNTY
---- ---- ------
Eterna-Tec Corp. Kaolinite Mohave County
CA Properties, Inc. Limestone Cibola County
88
EXHIBIT E
EXCLUSIVE SALES AGENCY AGREEMENT
Sales Agreements
- Sales agency agreement with First United Service, Trust 7602 dated
2/13/87
- Sales agency agreement with First United Service, Trust 8398 dated
1/1/01
- Agreement with First United Service dated June 3, 1997
Trust Agreements
- Trust agreement with First American Title Insurance Company, Trust
6798 dated 3/7/80
- Trust agreement with First American Title Insurance Company, Trust
7602 dated 2/27/87
- Trust agreement with First American Title Insurance Company, Trust
8340 dated 11/12/97
- Trust agreement with First American Title Insurance Company, Trust
8398 dated 1/28/99
- Trust agreement with First American Title Insurance Company, Trust
4517
89
EXHIBIT F
URANIUM RIGHTS
MINERAL LAND LEASES
NAME ACRES LOCATION
---- ----- --------
Uranium Resources Inc. 959.24 Hosta Butte, XxXxxxxx County
ROYALTY AGREEMENTS
NAME TYPE COUNTY
---- ---- ------
Uranium Resources Inc. Uranium Hosta Butte, XxXxxxxx County
90
EXHIBIT G
SELLER'S INTELLECTUAL PROPERTY
- The service xxxx "NZ," Registration No. 2472780 was registered with the
United States Patent and Trademark Office on July 24, 2001.
- The service xxxx "New Mexico and Arizona Land Company," Registration No.
2470944 was registered with the United States Patent and Trademark Office
on July 31, 2001.
- The service xxxx "NZ"(stylized), Registration No. 2477161 was registered
with the United States Patent and Trademark Office on August 14, 2001.
- The brand registered with the Arizona Department of Agriculture as Brand
No. 13492
91
EXHIBIT H
OIL AND GAS INTERESTS
Limited partnership interests in the following New Mexico partnerships:
Chace Limited XIX
Chace Limited XX
Chace Limited XXI
Chace Limited XXII
Chace 47-19 Joint Venture
The following mineral rights in Oklahoma, together with associated leases to
Marathon Oil.
NZ CORPORATION
MINERAL HOLDINGS
VARIOUS SECTIONS IN OKLAHOMA
12/31/2001
ORIGINAL MINERAL SURFACE MINERAL SURFACE
ACRES ACRES ACRES ACRES ACRES
TWN RGE SEC ACQUIRED SOLD SOLD RETAINED RETAINED
5N 9W 4 60.00 0.00 0.00 60.00 0.00
11N 23W 10 14.00 0.00 0.00 14.00 0.00
12N 23W 35 14.90 0.00 0.00 14.90 0.00
12N 25W 25 5.00 0.00 0.00 5.00 0.00
12N 25W 26 10.00 0.00 0.00 10.00 0.00
12N 25W 30 5.00 0.00 0.00 5.00 0.00
12N 25W 35 20.00 0.00 0.00 20.00 0.00
12N 26W 36 21.25 0.00 0.00 21.25 0.00
13N 9W 27 93.75 93.75 0.00 0.00 0.00
15N 13W 32 93.00 0.00 0.00 93.00 0.00
336.90 93.75 0.00 243.15 0.00
92
EXHIBIT 1-A
PROMISSORY NOTE
DATE: March 28, 2002
MAKERS: NZ TRUST, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ SNOWFLAKE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ MILKY RANCH, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ SILVER CREEK, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ XXXXXX CITY, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ NEW MEXICO LAND, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ URANIUM, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ TRAVERTINE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ OIL AND GAS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ MINERALS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ HISTORY AND ARTIFACTS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
c/o Xxxxxx X. Xxxxxxx
_________________________________
_____________, Arizona 85________
Facsimile Number (602) __________
PAYEE: NZ CORPORATION, AN ARIZONA CORPORATION
NZ DEVELOPMENT CORPORATION, AN ARIZONA CORPORATION
NZU CORPORATION, A NEW MEXICO CORPORATION
000 Xxxxx 00xx Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
Facsimile Number (000) 000-0000
ORIGINAL
PRINCIPAL
AMOUNT
OF LOAN: Seven Million Three Hundred Sixty Thousand and No/100 Dollars
($7,360,000)
FOR VALUE RECEIVED, Makers promise and agree to pay to Payee, at the
mailing address of Payee, or at such other place as the holder hereof ("Holder")
may from time-to-time designate, the principal sum of Seven Million Three
Hundred Sixty Thousand and No/100 Dollars ($7,360,000) with Interest (as defined
herein) commencing as provided herein on the unpaid amount of said sum at the
Base Rate (as defined herein) or the Default Rate (as defined herein), whichever
is applicable, as follows:
1. INTEREST RATE.
a. Commencing on March 30, 2002, and so long as no Event of Default
(as defined herein) exists, the unpaid balance of this Note shall accrue
interest ("Interest") at the rate of five and one-quarter percent (5.25%) per
annum ("Base Rate").
b. During any Event of Default under this Note or any security for
this Note, the unpaid balance of this Note shall accrue Interest at the rate of
ten percent (10%) per annum ("Default
93
Rate"). Interest shall accrue at the Default Rate from the date of an Event of
Default, without notice to Makers, if Borrower does not cure an Event of Default
as provided in this Note.
c. The Interest provided herein shall be calculated on the basis of
a 365-day year and if not paid as provided below by the tenth (10th) day of each
month, the due and unpaid Interest shall be compounded effective on the first
(1st) day of each such month.
2. PAYMENTS.
a. So long as no Event of Default exists, no monthly payments shall
be made until the Maturity Date (as defined herein) of this Note.
b. If not sooner paid, all accrued and unpaid Interest and all
unpaid principal of this Note shall be paid on June 28, 2002 ("Maturity Date").
Provided there is not an existing Event of Default under this Note, Makers shall
have the right to three (3) separate thirty (30) day extensions of the Maturity
Date by giving notice to Holder not later than ten (10) business days prior to
the then applicable Maturity Date ("Notice Date") of Makers' election to extend
the Maturity Date and by paying to Holder a principal reduction payment of not
less than $100,000.00 on the Notice Date(s) for each thirty day extension.
3. LATE PAYMENT CHARGE. Makers shall pay to Holder a late charge ("Late
Payment Charge") equal to five percent (5%) of any payment not received by the
Holder within five (10) days after said payment is due, including the unpaid
balance of this Note as of the Maturity Date.
4. REASONABLENESS OF CHARGES. Makers acknowledge that upon the occurrence
of an Event of Default, the damages to the Holder would be extremely difficult
to ascertain, including the Holder's lost profit and loss of use of the funds
evidenced hereby and expenses incurred in connection with such default, and that
the accrual of Interest at the Default Rate and the Late Payment Charge are
reasonable estimates of the loss to the Holder incurred by virtue of an Event of
Default.
5. LEGAL LIMITS.
a. Makers agree to an effective rate of interest which is the rate
stated herein plus any additional rate of interest resulting from any other
payments in the nature of interest, including without limitation, any loan fees
or other charges to the extent that such charges may be deemed includable in
interest for any purpose.
b. All agreements between Makers and Payee are hereby expressly
limited so that in no event whatsoever, whether by reason of deferment in
accordance with this Note or under any agreement or by virtue of acceleration or
maturity of the loan evidenced by this Note, or otherwise, shall the amount paid
or agreed to be paid to Payee for the loan, use, forbearance or detention of the
money to be loaned under this Note or to compensate Payee for damages to be
suffered by reason of a late payment or default under this Note, exceed the
maximum permissible under applicable law. If, from any circumstances whatsoever,
fulfillment of any provision of this Note, or of any provision in the security
for this Note at the time performance of such provision shall be due, shall
involve exceeding the limit of validity prescribed by law, from the date of this
Note, the obligations to be fulfilled shall be reduced to the limit of such
validity. This provision shall never be superseded or waived and shall control
every other provision of all agreements between Makers and Payee.
6. PREPAYMENT. The unpaid principal balance of this Note may be prepaid in
whole or in part without penalty at any time upon one business day's prior
notice.
94
7. FORM OF PAYMENTS. Payments of $100,000.00 or less may be paid by
company check but all other Principal and Interest payments shall be payable in
lawful money of the United States of America by wire transfer in immediately
available funds.
8. CREDITING OF PAYMENTS. Each payment hereunder shall be credited first
to costs of collection, second to late fees, third to accrued Interest and then
to principal.
9. EVENTS OF DEFAULT AND REMEDIES.
a. The existence or occurrence of either one or both of the
following events shall constitute an event of default ("Event of Default") under
this Note: (i) The failure by Makers to make any payment of principal, Interest,
Late Payment Charge or any other cost or expense due under this Note in
accordance with the terms of this Note; or, (ii) The occurrence of any event of
default under any security for this Note, including the Deed of Trust (as
defined herein).
b. Upon the occurrence of any Event of Default and the failure of
Makers to cure such default within five (5) days after notice thereof if
monetary and within thirty (30) days after notice thereof if non-monetary
(unless the Event of Default cannot be cured within thirty (30) days and Makers
commence a cure within the thirty (30) days and diligently prosecutes the cure
until it is complete, in which event, Makers shall have a reasonable amount of
time after the thirty (30) days to cure a non-monetary default): (i) the entire
unpaid principal balance, any unpaid Interest, and any other amounts owing under
this Note shall, at the option of the Holder and without further notice or
demand of any kind to Makers or any other person, immediately become due and
payable; and, (ii) the Holder shall have and may exercise any and all rights and
remedies available at law or in equity and also any and all rights and remedies
provided in any security for this Note.
c. The remedies of the Holder, as provided in this Note and in any
security for this Note, shall be cumulative and concurrent, and may be pursued
singularly, successively or together, at the sole discretion of the Holder, and
may be exercised as often as occasion therefor shall arise. No act of omission
or commission of the Holder, including specifically any failure to exercise any
right, remedy or recourse, shall be deemed to be a waiver or release of any
right, remedy or recourse, such waiver or release to be effected only through a
written document executed by the Holder. A waiver or release with reference to
any one event shall not be construed as continuing, as a bar to, or as a waiver
or release of, any subsequent right, remedy or recourse as to a subsequent
event.
10. SECURITY. This Note is secured by, among other things, and is entitled
to the benefits of a deed of trust, assignment of rents and leases and security
agreement ("Deed of Trust"), a Security Agreement, and a Collateral Assignment
of Member's Interest in Limited Liability Company (collectively referred to as
the "Security Documents"), all dated the date of this Note. The provisions of
the Deed of Trust are incorporated herein by reference as if set forth in full,
and the covenants and conditions of this Note shall control if there is a
conflict between them and the covenants and conditions contained in the Deed of
Trust.
11. ATTORNEYS' FEES. In the Event of Default under this Note or in the
event the Holder seeks legal advice in order to enforce the provisions of this
Note after an Event of Default, Makers agree to pay a reasonable sum to Holder
for Holderss.s attorneys' fees. If any action is brought to enforce or interpret
the provisions of this Note, the prevailing party shall be entitled to a
reasonable sum for attorneys' fees.
12. GOVERNING LAW AND SEVERABILITY. This Note is made pursuant to, and
shall be construed and governed by, the laws of the State of Arizona. If any
provision of this Note or any
95
security for this Note is construed or interpreted by a court of competent
jurisdiction to be void, invalid or unenforceable, such decision shall affect
only those provisions so construed or interpreted and shall not affect the
remaining provisions of this Note or any security for this Note.
13. TIME OF ESSENCE. Time is of the essence of this Note, provided that if
the date on which any payment of performance is due under this Note falls on a
day that is not a business day, then the payment and performance shall be due on
the next following business day.
14. PAYMENT WITHOUT OFFSET. Principal and Interest shall be paid without
deduction or offset.
15. CALENDAR DAYS. Unless otherwise provided in this Note to the contrary,
calendar days, and not business days, shall be used in calculating any time
periods set forth in this Note.
16. NOTICES. Any notices which any party may be required, or may desire,
to give, unless otherwise specified, shall be in writing and shall be (i)
hand-delivered, effective upon receipt, (ii) transmitted by telecopier,
effective upon receipt, with the original mailed the same date by first class
mail, postage prepaid, (iii) sent by United States Express Mail or by private
overnight courier, effective upon receipt, or (iv) served by certified mail,
postage prepaid, return receipt requested and addressed to such party at the
address set forth above, or to such other address(es) or addressee(s) as the
party to be served with notice may have furnished in writing to the other party,
effective three (3) days after mailing.
17. ASSIGNMENT. Payee or any other Holder of this Note may assign all or a
portion of its rights, title and interest in this Note and security to any
person, firm, corporation or other entity without the consent of Makers.
18. RELATIONSHIP. The relationship of the parties hereto is that of
borrower and lender and it is expressly understood and agreed that nothing
contained in this Note or in any security for this Note shall be interpreted or
construed to make Makers and Payee partners, joint venturers or participants in
any other legal relationship except for borrower and lender.
19. WAIVER. Except as otherwise expressly provided to the contrary in this
Note, the Deed of Trust or other loan documents relating to this Note, Makers
for themselves and for their successors, transferees and assigns and all
guarantors, endorsers and signers, hereby waives all valuation and appraisement
privileges, presentment and demand for payment, protest, notice of protest and
nonpayment, dishonor and notice of dishonor, bringing of suit, lack of diligence
or delays in collection or enforcement of this Note and notice of the intention
to accelerate, the release of any party liable, the release of any security for
this Note, the taking of any additional security and any other indulgence or
forbearance. Makers agree that this Note and any or all payments coming due
hereunder may be extended or renewed from time to time without in any way
affecting or diminishing Makers' liability under this Note. The acceptance by
Holder of a partial amount of a payment due from Makers to Holder under this
Note shall not constitute a waiver of the requirement of Makers to make a full
payment to Holder, and it shall not constitute a waiver by Holder of the time of
the essence provision of this Note.
20. HEADINGS. The subject headings of the paragraphs of this Note are
included for purposes of convenience only, and shall not affect the construction
or interpretation of any of its provisions.
21. JOINT AND SEVERAL LIABILITY. All persons or entities identified as one
of the Makers are jointly and severally liable for all of the Makers'
obligations hereunder; any breach, default or
96
Event of Default by any of the persons or entities identified as one of the
Makers shall be deemed to be a breach, default or Event of Default of all
Makers.
22. NOTE NON-NEGOTIABLE. Except for endorsement, sale or transfer to a
parent or wholly owned subsidiary of Payee, this Note is otherwise
non-negotiable.
23. CARRYBACK FINANCING. This Note represents payment obligations of
Makers under the Purchase Agreement for Real and Personal Property, dated March
28, 2002, between Payee, as seller and Makers, as buyer, and is subject to the
terms of such agreement.
IN WITNESS WHEREOF, Makers have executed this Note as of the date set
forth above.
MAKERS:
NZ TRUST, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ SNOWFLAKE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ MILKY RANCH, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ SILVER CREEK, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
97
NZ XXXXXX CITY, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
SIGNATURES CONTINUED ON FOLLOWING PAGE
98
NZ NEW MEXICO LAND, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ URANIUM, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ TRAVERTINE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ OIL AND GAS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ MINERALS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ HISTORY AND ARTIFACTS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NOTARY ON FOLLOWING PAGE
99
STATE OF ARIZONA )
) ss.
County of Maricopa )
The foregoing instrument was acknowledged before me this 28th day of
March, 2002 by Xxxxxx X. Xxxxxxx, in his capacity as Manager for and on behalf
of each of the following entities:
NZ TRUST, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ SNOWFLAKE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ MILKY RANCH, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ SILVER CREEK, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ XXXXXX CITY, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ NEW MEXICO LAND, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ URANIUM, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ TRAVERTINE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ OIL AND GAS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ MINERALS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ HISTORY AND ARTIFACTS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY.
/s/ Xxxxxx X. Xxxxxx
--------------------------------
Notary Public
My commission expires:
March 25, 2004
100
EXHIBIT 1-B
AFTER RECORDING, RETURN TO:
X. Xxxxxxx Xxxxx, Esq.
THE XXXXXXXX LAW FIRM, P.A.
0000 X. Xxxxxxx Xxx., Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
DEED OF TRUST, ASSIGNMENT OF RENTS AND LEASES
AND SECURITY AGREEMENT
DATE: March 28, 2002
TRUSTOR:
NZ TRUST, LLC, AN ARIZONA LIMITED LIABILITY
COMPANY NZ SNOWFLAKE, LLC, AN ARIZONA
LIMITED LIABILITY COMPANY NZ MILKY RANCH,
LLC, AN ARIZONA LIMITED LIABILITY COMPANY NZ
SILVER CREEK, LLC, AN ARIZONA LIMITED
LIABILITY COMPANY NZ XXXXXX CITY, LLC, AN
ARIZONA LIMITED LIABILITY COMPANY NZ NEW
MEXICO LAND, LLC, AN ARIZONA LIMITED
LIABILITY COMPANY NZ URANIUM, LLC, AN
ARIZONA LIMITED LIABILITY COMPANY NZ
TRAVERTINE, LLC, AN ARIZONA LIMITED
LIABILITY COMPANY NZ OIL AND GAS, LLC, AN
ARIZONA LIMITED LIABILITY COMPANY NZ
MINERALS, LLC, AN ARIZONA LIMITED LIABILITY
COMPANY NZ HISTORY AND ARTIFACTS, LLC, AN
ARIZONA LIMITED LIABILITY COMPANY
Attention: Xxxxxx Xxxxxxx
---------------------------------
---------------------------------
Facsimile Number (___)
BENEFICIARY: NZ CORPORATION, AN ARIZONA CORPORATION
NZ DEVELOPMENT CORPORATION, AN ARIZONA
CORPORATION NZU CORPORATION, A NEW MEXICO
CORPORATION 000 Xxxxx 00xx Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxx 00000 Facsimile Number
(000) 000-0000
TRUSTEE: X. XXXXXXX XXXXX, ESQ.
Attorney at Law
THE XXXXXXXX LAW FIRM, LP
0000 Xxxxx Xxxxxxx Xxx.
Xxxxx 0000
Xxxxxxx, XX 00000
Facsimile Number (000) 000-0000
101
ORIGINAL PRINCIPAL
INDEBTEDNESS SECURED: Seven Million Three Hundred
Sixty Thousand and No/100 Dollars
($7,360,000) evidenced by that
certain Promissory Note of even date
herewith executed by Trustor as the
Maker and payable to Beneficiary as
the Payee (the "Note").
LEGAL DESCRIPTION
OF REAL PROPERTY: That certain real property more particularly
described in Exhibit "A" attached hereto
and by this reference incorporated herein ("Property").
Trustor, in consideration of the loan described herein, irrevocably
grants, bargains, conveys, transfers and assigns the Property to Trustee, its
successors and assigns, in trust, with power of sale and right of entry and
possession, together with all structures and improvements now existing or
hereafter erected on the Property, all easements, rights and appurtenances
thereto or used in connection therewith, all leases, lease guarantees, rents,
royalties, issues, profits, revenues, income and other benefits thereof or
arising from the use or enjoyment of all or any portion thereof (subject to the
rights given below to Trustor to collect and apply such rents, royalties,
issues, profits, revenues, income and other benefits), all water rights and
water stock, all solar rights, all rights held by Trustor as the declarant under
any covenants, conditions and restrictions against the Property, all tangible
property and rights relating to the Property or the operation thereof, or used
in connection therewith, including without limitation (if owned by Trustor or if
Trustor has an interest therein) all goods, instruments, documents, chattel
paper, contract rights, accounts, general intangibles, inventory, furniture,
equipment and fixtures, trade names and trademarks, licenses, permits,
franchises, all fixtures, machinery, equipment, building materials, appliances
and goods of every nature whatsoever now or hereafter located in, or on,
attached or affixed to, or used or intended to be used in connection with, the
Property, including, but without limitation, all heating, lighting, laundry,
incinerating, gas, electric and power equipment, engines, pipes, pumps, tanks,
motors, conduits, switchboards, plumbing, lifting, cleaning, fire prevention,
fire extinguishing, refrigerating, ventilating and communications apparatus, air
conditioning apparatus, elevators and related machinery and equipment, pool and
pool operation and maintenance equipment, shades, awnings, blinds, curtains,
drapes, attached floor coverings, including rugs and carpeting, television,
radio and music cable antennae and systems, screens, storm doors and windows,
stoves, refrigerators, dishwashers and other installed appliances, attached
cabinets, partitions, ducts and compressors, and trees, plants and other items
of landscaping, all of which, including replacements and additions (including
abandonment) thereto, shall, to the fullest extent permitted by law and for the
purposes of this Deed of Trust, be deemed conclusively to be real property and
conveyed by this Deed of Trust, and all proceeds and products of any and all
thereof, and Trustor agrees to execute and deliver, from time to time, such
further instruments and documents as may be required by Beneficiary to confirm
the lien of this Deed of Trust on any of the foregoing; all of the foregoing
property referred to in this paragraph, together with the Property, are
collectively referred to hereafter as the "Property";
This Deed of Trust is given for the purpose of securing, in such order of
priority as Beneficiary may elect:
(a) Payment in full of the Note and any extensions, renewals or
modifications thereof, including payment of principal and interest pursuant to
the terms of the Note in graduated, adjusted or graduated and adjusted payments,
if the Note calls for graduation, adjustment or graduation and adjustment of
payments, respectively, and including payment of interest as adjusted pursuant
to the terms of the Note, if the Note calls for any adjustments in the rate at
which interest accrues and including payment of amounts respecting interest
added to principal, if the Note provides for the addition of accrued and unpaid
interest to principal, and the performance and discharge of each and every
obligation of Trustor set forth in the Note.
(b) Payment of such additional sums, with interest thereon, as may
hereafter be borrowed from Beneficiary by the then record owner or owners of the
Property when evidenced by another promissory note or notes which recite that
they are so secured.
(c) Performance of each agreement of Trustor herein contained or
incorporated herein by reference including those contained in that certain Loan
Agreement between Beneficiary and Trustor dated the same date as this Deed of
Trust, and other documents executed by Trustor in connection with the loan
evidenced by the Note, which documents are hereby incorporated by reference.
102
(d) Payment and performance of all obligations under this Deed of
Trust.
(e) All interest and charges on all obligations secured hereby
including, without limit, late charges and loan fees.
COVENANTS OF TRUSTOR
To ensure payment of the Note and all amounts due thereunder and to
protect the security of this Deed of Trust, Trustor covenants and agrees as
follows:
1. PERFORMANCE OF OBLIGATIONS SECURED. Trustor shall promptly pay when due
the principal and interest evidenced by the Note, and any late charges and other
fees provided for in the Note or provided for herein, and shall further perform
fully and in a timely manner all other obligations of Trustor contained in this
Deed of Trust or in the Note. All sums payable by Trustor hereunder shall be
paid without demand, counterclaim, offset, deduction or defense, and Trustor
waives all rights now or hereinafter conferred by law or otherwise to any such
demand, counterclaim, offset, deduction or defense.
2. INSURANCE. Trustor shall keep the Property insured with an all-risk
policy insuring against loss or damage by fire with extended coverage and
against any other risks or hazards (to the extent insurable) and which, in the
opinion of Beneficiary, should be insured against, in an amount not less than
the full insurable value thereof on a replacement cost basis, with an inflation
guard endorsement, with a company or companies and in such form and with such
endorsements as may be approved or required by Beneficiary, including, if
applicable, boiler explosion coverage and sprinkler leakage coverage. All losses
under said insurance shall be payable to Beneficiary and shall be applied in the
manner provided in Paragraph 3 herein. Trustor also shall carry comprehensive
general public liability insurance for not less than $1,000,000 per occurrence
in such form and with such companies as are reasonably satisfactory to
Beneficiary. Trustor also shall carry insurance against flood if required by the
Federal Flood Disaster Protection Act of 1973 and regulations issued thereunder.
All hazard, flood and rent loss insurance policies shall be endorsed with a
standard noncontributory mortgagee clause in favor of and in form acceptable to
Beneficiary, and may be canceled or modified only upon not less than ten (10)
days' prior written notice to Beneficiary. All of the above-mentioned insurance
policies or certificates of such insurance satisfactory to Beneficiary, together
with receipts for the payment of premiums thereon, shall be delivered to and
held by Beneficiary, which delivery shall constitute assignment to Beneficiary
of all return premiums to be held as additional security hereunder. All renewal
and replacement policies shall be delivered to Beneficiary at least thirty (30)
days before the expiration of the expiring policies. Beneficiary shall not by
the fact of approving, disapproving, accepting, preventing, obtaining or failing
to obtain any insurance, incur any liability for or with respect to the amount
of insurance carried, the form or legal sufficiency of insurance contracts,
solvency of insurance companies, or payment or defense of lawsuits, and Trustor
hereby expressly assumes full responsibility therefor and all liability, if any,
with respect thereto.
3. CONDEMNATION AND INSURANCE PROCEEDS.
a. Payment of Proceeds. The proceeds of any award or claim for
damages, direct or consequential, in connection with any condemnation or other
taking of or damage or injury to the Property, or any part thereof, or for
conveyance in lieu of condemnation, are hereby assigned to and shall be paid to
Beneficiary and to be applied in accordance with the provisions of Subparagraph
(3b) herein. In addition, all causes of action, whether accrued before or after
the date of this Deed of Trust, of all types for damages or injury to the
Property, or in connection with or affecting the Property or any part thereof,
including without limitation causes of action arising in tort or contract and
causes of action for fraud or concealment of a material fact, are hereby
assigned to Beneficiary as additional security, and the proceeds thereof shall
be paid to Beneficiary. Beneficiary may at its option appear in and prosecute in
its own name any action or proceeding to enforce any such cause of action and
may make any compromise or settlement thereof. Trustor, immediately upon
obtaining knowledge of any casualty damage to the Property or damage in any
other manner in excess of $25,000 or knowledge of the institution of any
proceedings relating to condemnation or other taking of or damage or injury to
the Property or any portion thereof, shall immediately notify Beneficiary in
writing of such occurrence. Beneficiary may participate in any such proceedings
and may join Trustor in adjusting any loss covered by insurance.
103
b. Application of Proceeds. All compensation, awards, proceeds,
damages, claims, insurance recoveries, rights of action and payments which
Trustor may receive or to which Trustor may become entitled with respect to the
Property in the event of any damage or injury to or a partial condemnation or
other partial taking of the Property shall be paid over to Beneficiary and shall
be applied first toward reimbursement of all costs and expenses of Beneficiary
in connection with recovery of the same, and then shall be applied, as follows:
1) Beneficiary shall consent to the application of such
payments to the restoration of the Property so damaged if and only if Trustor
fulfills all of the following conditions, a breach of any one of which shall
constitute an Event of Default under this Deed of Trust: (i) that no default or
Event of Default which has not been cured within the applicable cure period is
then outstanding under this Deed of Trust or the Note; (ii) Beneficiary is
satisfied that the insurance or award proceeds shall be sufficient to fully
restore and rebuild the Property free and clear of all liens except the liens of
any Senior Encumbrance or of this Deed of Trust, or, in the event that such
proceeds are in Beneficiary's reasonable judgment insufficient to restore and
rebuild the Property, then Trustor shall deposit promptly with Beneficiary funds
which, together with the insurance or award proceeds, shall be sufficient in
Beneficiary's sole judgment to restore and rebuild the Property; (iii)
construction and completion of restoration and rebuilding of the Property shall
be completed in accordance with plans and specifications and drawings submitted
to and approved by Beneficiary, which plans and specifications and drawings
shall not be substantially modified, changed or revised without Beneficiary's
prior written consent, said consent not to be unreasonably withheld; and, (v)
any and all monies which are made available for restoration and rebuilding
hereunder shall be disbursed through Beneficiary, the Trustee or a title
insurance company satisfactory to Beneficiary, in accord with standard
construction lending practice, including, if requested by Beneficiary, monthly
lien waivers and title insurance endorsements, and the provision of payment and
performance bonds by Trustor, or in any other manner approved by Beneficiary in
Beneficiary's sole discretion; or,
2) If less than all of conditions (i) through (v) in
Subparagraph (1) above are satisfied, then such payments shall be applied in the
sole and absolute discretion of Beneficiary: (i) to the payment or prepayment
with any applicable prepayment premium of any indebtedness secured by this Deed
of Trust in such order as Beneficiary may determine; or, (ii) to the
reimbursement of Trustor's expenses incurred in the rebuilding and restoration
of the Property. In the event Beneficiary elects under this Subparagraph (2) to
make any monies available to restore the Property, then all of conditions (i)
through (v) in Subparagraph (1) above shall apply, except such conditions which
Beneficiary, in its sole discretion, may waive.
After restoration of the Property as provided in 3(b)(1) above, such payments
shall be applied to the payment or prepayment of any indebtedness secured by
this Deed of Trust.
c. Inadequate Insurance. If any material part of the Property is
damaged or destroyed and the loss is not adequately covered by insurance
proceeds collected or in the process of collection, Trustor shall deposit,
within ten (10) days of the Beneficiary's request therefor, the amount of the
loss not so covered.
d. Condemnation Award and Insurance Proceeds. All compensation,
awards, proceeds, damages, claims, insurance recoveries, rights of action and
payments which Trustor may receive or to which Trustor may become entitled with
respect to the Property in the event of a total condemnation or other total
taking of the Property shall be paid over to Beneficiary and shall be applied
first toward reimbursement of all costs and expenses of Beneficiary in
connection with recovery of the same, and then shall be applied to the payment
or prepayment (with any applicable prepayment premium) of any indebtedness
secured hereby in such order as Beneficiary may determine, until the
indebtedness secured hereby has been paid and satisfied in full. Any surplus
remaining after payment and satisfaction of the indebtedness secured hereby
shall be paid to Trustor as its interest may then appear.
e. No Waiver. Any application of such amounts or any portion thereof
to any indebtedness secured hereby shall not be construed to cure or waive any
default or notice of default hereunder or invalidate any act done pursuant to
any such default or notice.
4. TAXES, LIENS AND OTHER ITEMS. Trustor shall pay at least ten days
before delinquency, all taxes, bonds, assessments, special assessments, common
area charges, fees, liens, charges, fines, penalties, impositions and any and
all other items which are attributable to or affect the Property and which may
attain a priority over this Deed of Trust, by making payment directly to the
payee thereof, unless Trustor shall be required to make payment to
104
Beneficiary on account of such items pursuant to Paragraph 5 herein. Trustor
shall discharge any lien which has attained or may attain priority over this
Deed of Trust within thirty (30) days from the date that Trustor receives notice
of same. In the event of the passage after the date of this Deed of Trust of any
law deducting from the value of real property for the purposes of taxation any
lien thereon, or changing in any way the laws for the taxation of deeds of trust
or debts secured by deeds of trust for state, federal or any other purposes, or
the manner of the collection of any such taxes, so as to affect this Deed of
Trust, the holder of this Deed of Trust and of the debt which it secures shall
have the right to declare the principal sum and the interest due on a date to be
specified by not less than thirty (30) days written notice to be given to
Trustor by Beneficiary; provided, however, that such election shall be
ineffective if Trustor is permitted by law to pay the whole of such tax in
addition to all other payments required hereunder and if, prior to such
specified date, does pay such taxes and agrees to pay any such tax when
hereafter levied or assessed against the Property, and such agreement shall
constitute a modification of this Deed of Trust.
5. IMPOUND ACCOUNT. Upon any Event of Default under this Deed of Trust,
whether or not subsequently cured, Trustor agrees to pay to Beneficiary, if
Beneficiary so requests, in addition to any other payments required hereunder or
under the Note, the monthly installments, as estimated by Beneficiary, of all
taxes, assessments and insurance premiums (together with ground rents if the
Property includes a leasehold estate) for the purpose of building up a fund to
insure payment when due or before delinquency of any or all of the taxes,
assessments and insurance premiums (and rents if applicable) required to be paid
with respect to the Property. If the amounts paid to Beneficiary under the
provisions of this Paragraph 5 are insufficient to discharge the obligations of
Trustor to pay such premiums, taxes and assessments (and rents if applicable) as
the same become due or delinquent, Trustor shall pay to Beneficiary, upon its
demand, such additional sums as are necessary to discharge Trustor's obligations
to pay such amounts. All moneys paid to Beneficiary under this Paragraph 5 may
be intermingled with other moneys of or paid to Beneficiary but a separate
account called "Impound Account" shall be maintained therefor. Disbursements
shall be made against such account for the payment by Beneficiary of the
foregoing amounts, whether before or after they become due and payable. In the
event of a default in the payment of any moneys due on the Note or default in
the performance of any of the covenants and obligations of this Deed of Trust,
then the balance remaining from moneys paid to Beneficiary under the provisions
of this Paragraph 5 may, at the option of Beneficiary, be applied to the payment
of principal and/ or interest upon the Note after being applied to any of the
purposes for which the Impound Account was established. Beneficiary will make
such reports of the Impound Account as are required by law. If Beneficiary sells
or assigns this Deed of Trust, Beneficiary shall have the right to transfer all
amounts deposited under this Paragraph 5 to the purchaser or assignee, and
Beneficiary shall thereupon be released and have no further liability hereunder
for the application of such deposits, and Trustor shall look solely to such
purchaser or assignee for such application and for all responsibility relating
to such deposits.
6. MAINTENANCE AND PRESERVATION OF THE PROPERTY. Trustor shall: (i) keep
the Property in good condition and repair; (ii) not remove or demolish the
Property or any part thereof without Beneficiary's prior written consent; (iii)
except for any Improvements described in the Loan Agreement, not alter, restore
or add to the Property without Beneficiary's prior written consent; (iv)
complete or restore promptly and in good and workmanlike manner the Property
pursuant to Section 3(b) or any part thereof which may be damaged or destroyed;
(v) not suffer violation of any, and shall comply with all: (a) laws,
ordinances, regulations and standards; (b) all covenants, conditions,
restrictions and equitable servitudes, whether public or private, of every kind
and character; and, (c) requirements of insurance companies and any bureau or
agency which establishes standards of insurability, which laws, covenants or
requirements affect the Property and pertain to acts committed or conditions
existing therein, including (but without limit) such work or alteration,
improvement or demolition as laws, covenants or requirements mandate; (vi) not
alter the occupancy or use of all or any part of the Property without the prior
written consent of Beneficiary; (vii) as required by Beneficiary, perform the
lessor's covenants under the leases affecting the Property in which Trustor
holds the lessor's interest, and not to cause or permit a modification or
termination of any lease that would impair the value of the leases to the
lessor, or the interest of the lessor or Beneficiary in the leases; (viii) not
commit or permit waste of the Property; (ix) do all other acts which from the
character or use of the Property may be reasonably necessary to maintain and
preserve its value; (x) not create any deed of trust or encumbrance upon the
Property subsequent hereto, without the prior written consent of Beneficiary;
(xi) make no further assignment of rents of the Property without Beneficiary's
prior written consent; and, (xii) execute and, where appropriate, acknowledge
all further documents, instruments and other papers as Beneficiary or Trustee
deems necessary or appropriate to preserve, continue, perfect and enjoy the
security of this Deed of Trust and perform Trustor's obligations, including,
without limit, statements of the amount secured hereby then owing and statements
of no offset.
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7. CONSTRUCTION OF IMPROVEMENTS. If Trustor shall commence any alteration
or construction of improvements on the Property, Trustor agrees, anything in
this Deed of Trust to the contrary notwithstanding: (i) to complete same in
accordance with plans and specifications satisfactory to Beneficiary; (ii) to
allow Beneficiary to inspect the Property at all times during construction;
(iii) to replace any work or materials unsatisfactory to Beneficiary within
thirty (30) days after written notice from Beneficiary of such fact; (iv) to
immediately discharge or bond over any mechanic or materialman's lien; and (v)
that work shall not cease on the construction of such improvements for any
reason whatsoever (except for acts of God or force majeure) for a period of
fifteen (15) or more calendar days. Trustor shall comply with all laws affecting
the Property and pertaining to any alterations or improvements to be made
thereon.
8. PROTECTION OF BENEFICIARY'S SECURITY. If Trustor fails to perform the
covenants and agreements contained in this Deed of Trust, or if any action or
proceeding is commenced which materially affects Beneficiary's interest in the
Property, including, but not limited to, eminent domain, insolvency, code
enforcement, or arrangements or proceedings involving a bankrupt or decedent,
then Beneficiary at its option, upon notice to Trustor, may make such
appearances, disburse such sums and take such action as is necessary to protect
Beneficiary's interest, including, but not limited to, disbursement of
reasonable attorneys' fees and entry upon the Property to make repairs. Any
amounts disbursed by Beneficiary pursuant to this Paragraph 8, or any other
provision of this Deed of Trust, with interest thereon, shall become additional
indebtedness of Trustor secured by this Deed of Trust. Unless Trustor and
Beneficiary agree to other terms of payment, such amounts shall be payable upon
notice from Beneficiary to Trustor requesting payment thereof, and shall bear
interest from the date of disbursement at the Default Rate set forth in the
Note, unless payment of interest at such rate would be contrary to applicable
law, in which event such amounts shall bear interest at the highest rate
permissible under applicable law. Trustor recognizes that its failure to pay
such sums when due will require Beneficiary to incur additional expense in
servicing the loan secured hereby, in loss to the Beneficiary in meeting its
other financial commitments, and that damages caused thereby would be extremely
difficult and impractical to ascertain. Trustor agrees that the accrual of
interest at the Default Rate on such sums is a reasonable estimate of the damage
to Beneficiary in the event of Trustor's failure to pay such sums. Nothing
contained in this Paragraph 8 shall require Beneficiary to incur any expense or
take any action hereunder. Likewise, in the event that Trustee shall expend any
amounts pursuant to any provision of this Deed of Trust, such amounts with
interest shall be repaid and become additional indebtedness secured by this Deed
of Trust, all in accordance with the foregoing.
9. ACCESS TO TRUSTOR'S BOOKS AND RECORDS. Trustor shall permit and hereby
authorize Beneficiary or its agents, at all reasonable times during normal
business hours (but not more than once a quarter) subject to 24 hours verbal
notice, to have unrestricted access to and to copy its records, books of
account, ledgers, journals, contracts, subcontracts, bills and statements
relating to the Property, including any supporting or related vouchers or other
instruments. If Beneficiary so requires, such records, books, vouchers or other
documents shall be made available at Trustor's office to an accountant of
Beneficiaryss.s choice for audit, examination, inspection or duplication.
10. USE OF PROPERTY. Except as provided in the Loan Agreement of even date
herewith or unless required by applicable law or unless Beneficiary has
otherwise agreed in writing, Trustor shall not allow material changes in the use
for which the Property was intended at the time this Deed of Trust was executed.
Trustor shall not initiate or acquiesce in a change in the zoning classification
of the Property without Beneficiary's written consent.
11. PERFORMANCE UNDER SUPERIOR LIENS.
a. Performance Required. In the event the lien of this Deed of Trust
is subject and subordinate at any time to the lien of any other mortgage(s) or
deed(s) of trust (collectively, "Senior Encumbrance"), Trustor agrees to perform
and discharge in due course and in accordance with its terms and provisions, all
obligations secured by the Senior Encumbrance, including all other agreements or
obligations undertaken or created for the purpose of evidencing or securing the
obligations evidenced by the note(s) (collectively, "Senior Note") secured by
the Senior Encumbrance (together "Senior Encumbrance Obligations"). Any failure
on the part of Trustor fully to perform and discharge all such Senior
Encumbrance Obligations in accordance with their terms shall constitute a breach
and default by Trustor of its obligation to Beneficiary arising under this Deed
of Trust, in which
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event, subject to applicable cure periods, Beneficiary may elect to accelerate
and declare the entire principal balance and all accrued and unpaid interest on
the Note, and all other sums secured hereby, immediately due and payable.
Trustor agrees that Beneficiary may, but need not, perform and/or discharge any
Senior Encumbrance Obligations. Trustor hereby warrants to Beneficiary that
Trustor's obligation pursuant to any such senior Deed of Trust is fully current
and that no default exists with respect thereto.
b. Default for Failure to Perform. In addition, in the event that
Trustor shall, voluntarily or involuntarily, take or permit to be taken any act,
or fail to take any act which results in an acceleration of the due date of the
principal balance of the Senior Note or a change in the terms thereof (other
than a change in the interest rate pursuant to an adjustment to a variable
interest rate set forth in such Senior Note) or in the making of a future
advance secured by the Senior Encumbrance (if such advance increases the
principal balance of the Senior Note to an amount greater than the principal
amount shown on said Senior Note), then, irrespective of whether or not
Trustor's act or omission constitutes a default under the Senior Note or Senior
Encumbrance and irrespective of the Senior Note holder's actual authority or
entitlement to accelerate or change such terms, subject to applicable cure
periods, Beneficiary may elect at any time thereafter to accelerate and declare
the entire principal balance and all accrued and unpaid interest on the Note,
and all other sums secured hereby, immediately due and payable. Without in any
manner limiting the aforesaid right of Beneficiary to accelerate in such event,
Beneficiary may also elect to perform or discharge the Senior Encumbrance
obligations or contest, at Beneficiary's sole discretion, the right and
authority of the holder of the Senior Note to take the above-described action.
In the event that Beneficiary shall perform or discharge all or part of the
Senior Encumbrance Obligations, expenditures thus made by Beneficiary shall be
reimbursed by Trustor to Beneficiary on demand. In the event that Beneficiary
shall contest the aforesaid action taken by the holder of the Senior Note,
Trustor agrees to cooperate with Beneficiary in such contest.
12. ABSOLUTE ASSIGNMENT OF RENTS, ISSUES AND PROFITS.
a. Present Assignment. All of Trustor's interest in any leases or
other occupancy agreements pertaining to the Property now existing or hereafter
entered into, and all of the leases, lease guarantees, rents, royalties, issues,
profits, revenue, income and other benefits of the Property existing from the
use or enjoyment of all or any portion thereof or from any lease or agreement
pertaining to occupancy of any portion of the Property now existing or hereafter
entered into (the "Rents and Profits"), whether now due, past due, or to become
due, and including all prepaid rents and security deposits, are hereby
absolutely, presently and unconditionally assigned, transferred and conveyed to
Beneficiary to be applied by Beneficiary in payment of the principal and
interest and all other sums payable on the Note and under this Deed of Trust.
Beneficiary temporarily waives the right to exercise the rights and powers
assigned to Beneficiary herein and agrees not to revoke such waiver until and
unless an Event of Default (as defined hereafter) occurs and the cure period has
expired. It is understood and agreed that the foregoing assignment of Rents and
Profits to Beneficiary shall not be deemed to make Beneficiary a
"mortgagee-in-possession" or otherwise responsible or liable in any manner with
respect to the Property or the use, occupancy, enjoyment or operation of all or
any portion thereof, unless and until Beneficiary, in person or by agent,
assumes actual possession thereof. Likewise, appointment of a receiver for the
Property or any part thereof shall not be deemed to make Beneficiary a
"mortgagee-in-possession" or otherwise responsible or liable in any manner with
respect to the Property. Upon the occurrence of any Event of Default hereunder
and the expiration of any applicable cure period, this shall constitute a
direction to and full authority to each lessee under any lease to pay all Rents
and Profits to Beneficiary without proof of the default. Trustor hereby
irrevocably authorizes each lessee to rely on and comply with any notice or
demand by Beneficiary for the payment to Beneficiary of any Rents and Profits
due or to become due.
b. Application of Rents. Trustor shall apply the Rents and Profits
to the payment of all necessary and reasonable operating costs and expenses of
the Property, and debt service on the indebtedness secured hereby, before using
the Rents and Profits for Trustor's personal use or any other purpose not for
the direct benefit of the Property.
c. Performance by Trustor and Assignment of Leases. Trustor shall at
all times perform the obligations of lessor under all such leases. Trustor shall
at any time or from time to time, upon request of Beneficiary, transfer and
assign to Beneficiary in such form as may be satisfactory to Beneficiary,
Trustor's interest in any lease, subject to and upon the condition, however,
that prior to the occurrence of any Event of Default and the expiration of any
cure period hereunder Trustor shall have a license to collect and receive all
Rents and
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Profits under such lease upon accrual, but not prior thereto, as set forth in
Subparagraph a above. Whenever requested by Beneficiary, Trustor shall furnish
to Beneficiary, as to all tenancies of a term in excess of thirty (30) days: (i)
a certificate of Trustor setting forth the names of all lessees under any
leases, the terms of their respective leases, the space occupied, the rents
payable thereunder, and the dates through which any and all rents have been
paid; and, (ii) (upon a best efforts basis) duly executed estoppel certificates
from any one or more leases as required by Beneficiary attesting to such facts
as Beneficiary may reasonably require. Trustor shall not collect rents for more
than one payment period in advance from any tenant without the written consent
of Beneficiary.
d. Attornment. Each lease for any part of the Property, shall make
provision for the attornment of the lessee thereunder to any person succeeding
to the interest of Trustor as the result of any foreclosure or transfer in lieu
of foreclosure hereunder.
e. Direct Creditor. Beneficiary shall be deemed to be the creditor
of each lessee in respect of any assignments for the benefit of creditors and
any bankruptcy, arrangement, reorganization, insolvency, dissolution,
receivership or other debtor-relief proceedings affecting such lessee (without
obligation on the part of Beneficiary, however, to file timely claims in such
proceedings or otherwise pursue creditor's rights therein). Beneficiary shall
have the right to assign Trustor's right, title and interest in any leases to
any subsequent holder of this Deed of Trust or any participating interest
therein or to any person acquiring title to all or any part of the Property
through foreclosure or otherwise. Any subsequent assignee shall have the rights
and powers herein provided to Beneficiary. Upon an Event of Default and the
expiration of the period of time to cure, Beneficiary shall have the authority,
as Trustor's attorney-in-fact, such authority being coupled with an interest and
irrevocable, to sign the name of Trustor and to bind Trustor on all papers and
documents relating to the operation, leasing and maintenance of the Property.
13. PERSONAL PROPERTY SECURITY INTEREST.
a. Security Interest. This Deed of Trust grants a security interest
in and covers all property owned by Trustor or in which Trustor has an interest
affixed to or located upon the Property, all articles of personal property and
all materials delivered to the Property for incorporation or use in any
construction being conducted thereon which, to the fullest extent permitted by
law, shall be deemed fixtures and a part of the Property. Such personal property
shall include the personal property identified in the attached Exhibit B, if
any, and: (i) all presently owned and hereafter acquired goods, instruments,
documents, chattel paper, contract rights, accounts, general intangibles,
inventory, fixtures, furniture, furnishings, machinery, equipment and appliances
and all personal property of Trustor now or hereafter attached to or installed
or placed in, on or about the Property for use in conjunction with the use and
occupancy thereof, together with all accessories, parts and appurtenances
thereto and all additions, renewals, improvements, and replacements thereof.
(Trustor also hereby assigns to Beneficiary all leases and use agreements of all
personal property in the categories above set forth, under which Trustor is the
lessee or entitled to use such items, and Trustor agrees to execute to
Beneficiary separate assignments of such leases and agreements when requested by
Beneficiary, but Beneficiary shall not be obligated thereunder unless it so
chooses, and Trustor agrees to fully and timely perform such obligations); (ii)
all leases, lease guarantees, income, rents, issues, and profits which, from and
after the date hereof, may accrue from said goods, fixtures, furnitures,
furnishings, machinery, equipment and appliances, or any part thereof, or which
may be received or receivable by Trustor from any use, leasing, or subleasing
thereof (provided, that so long as Trustor is not in default hereunder after the
expiration of the applicable cure period, Trustor shall have a license to
collect said income, rents, issues and profits, subject, however, to any
separate and prior assignment of leases and rents); (iii) all presently owned
and hereafter acquired general intangibles and rights of every kind and nature
of Trustor relating to the Property or the operation thereof, including but not
limited to, all governmental permits relating to construction on the Property,
all names by which the Property may be operated or known, all rights to carry on
business under any such names, and all trade names, trademarks and goodwill in
any way relating to the Property; (iv) all presently owned and hereafter
acquired reserves, deferred payments, deposits, refunds, and payments, of every
kind and nature of Trustor in any way relating to the Property or any of the
personal property thereon other than rents, issues and profits previously and
separately assigned; (v) all presently owned and hereafter acquired water stock
and all solar rights owned by Trustor relating to the Property; and, (vi) all
presently owned and hereafter acquired drawings, plans and specifications of
Trustor prepared for construction of improvements relating to the Property, and
all studies and data related thereto, and all contracts and agreements of the
Trustor relating thereto or to the construction of improvements on the Property.
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b. Security Agreement. To the extent any property covered by this
Deed of Trust consists of personal property covered by the Uniform Commercial
Code, this Deed of Trust constitutes a Security Agreement and is intended to
create a security interest in such personal property in favor of Beneficiary.
This Deed of Trust shall be self-operative with respect to said personal
property, but Trustor agrees to execute and deliver on demand such security
agreement, financing statement and other instruments as Beneficiary may request
in order to impose the lien hereof more specifically upon any of said personal
property. Further, Trustor will at all times, at its sole cost and expense, keep
said personal property insured to the full cash value thereof against loss or
damage by fire and other risks which, in the opinion of Beneficiary, should be
insured against, under policies of insurance with loss payable to Beneficiary,
in form and by companies acceptable to Beneficiary and which shall provide for
thirty (30) days minimum cancellation notice to Beneficiary. Each such policy or
a certificate thereof shall be delivered to and retained by Beneficiary.
Beneficiary is hereby irrevocably appointed Trustor's attorney-in-fact to
endorse any check or draft that may be payable to Trustor, alone or jointly with
other payees, so that Beneficiary may collect the proceeds payable for any loss
under such insurance. Such proceeds, less any expenses incurred by Beneficiary
in collection thereof, shall be applied either toward the costs of repair or
replacement of the items damaged or destroyed, or, on account of any sums
secured hereby, whether or not then due, in the same manner and upon the same
terms and conditions as provided in Paragraph 3 above.
c. Sale of Personal Property. In the Event of Default, and the
expiration of the period of time to cure, Beneficiary may sell such personal
property or any part thereof at public or private sale with notice to Trustor as
hereinafter provided. The proceeds of sale, after deducting all expenses of
Beneficiary in taking, storing, repairing and selling the personal property
(including reasonable attorney's fees) shall be applied to such matters, in such
amounts, and in such order, as Beneficiary shall determine. At any sale, public
or private, of said personal property or any part thereof, Beneficiary may
purchase any or all said personal property offered at such sale. Beneficiary
shall give Trustor reasonable notice of any sale of any of said personal
property. Trustor agrees that notice and demand shall be conclusively deemed to
be reasonable and effective if such notice is mailed at least five (5) days
prior to sale, by regular or certified mail, postage prepaid, to Trustor at its
address above set forth, or to such other address as Trustor may hereafter
designate in writing to Beneficiary.
d. Creditors' Rights. Beneficiary shall have all the rights and
remedies afforded a secured party under the Uniform Commercial Code of the state
in which the Property is located and all other legal or equitable remedies
provided by law, including, without limitation, the right to the appointment of
a receiver.
14. FIXTURE FILING. This Deed of Trust constitutes a financing statement
filed as a fixture in the Official Records of the County Recorder of the county
in which the Property is located with respect to any and all fixtures included
within the term "Property" as used herein and with respect to any goods or other
personal property that may now be or hereafter become such fixtures.
15. TRANSFER RESTRICTIONS AND ACCELERATION. Subject to the provisions set
forth herein, should Trustor sell, convey, transfer, or assign its interest in,
including placing a lien thereon, or lease for a term in excess of one (1) year
(except for the leases in effect as of the date of this Deed of Trust), the
Property, or any part thereof, or any interest therein, or agree so to do, or
suffer Trustor's title or any interest therein to be divested, whether
voluntarily or involuntarily, or change, or permit to be changed, the character
or the use of the Property, or drill or extract oil, gas or other hydrocarbon
substances or any mineral of any kind or character on the Property, or if
Trustor is a partnership and the interest of a general partner is assigned or
transferred or, if Trustor is a corporation and more than 25% of the corporate
stock thereof is sold, transferred or assigned during any eighteen (18) month
period (collectively, hereinafter "Sale"), without the written consent of
Beneficiary being first obtained, then Beneficiary shall have the right, at its
option, subject to applicable law, to accelerate and declare the entire
principal balance and all accrued and unpaid interest on the Note, and all other
sums secured hereby, immediately due and payable. The provisions of this
Paragraph 15 shall be fully applicable to any involuntary Sale and Sale by
operation of law as well as any voluntary Sale by Trustor, but an agreement to
sell subject to the consent of Beneficiary shall not be deemed to be a Sale. The
foregoing right of acceleration is in addition to all other rights of
acceleration which Beneficiary may have under this Deed of Trust or the Note.
The foregoing shall not apply to the release of the Property under any provision
in this Deed of Trust; furniture and fixtures, breakables and supplies, sold or
exchanged in the ordinary course of business, provided that items of comparable
value and quality are substituted as replacements; any assignment, transfer or
conveyance of the Property with the consent of Beneficiary which consent may be
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withheld by Beneficiary, based upon Beneficiary's review of the transferee's
credit worthiness, transferee's experience with projects of the nature secured
hereby, the terms of the transfer, and other factors deemed by Beneficiary to be
material in evaluating the proposed transferee. Upon the assignment, transfer or
conveyance of the Property with Beneficiary's consent, Trustor shall pay to
Beneficiary a fee in an amount equal to one percent of the unpaid principal
balance of the loan ("Transfer Fee") at the time of the said assignment,
transfer or conveyance.
16. FINANCIAL STATEMENTS; OFFSET CERTIFICATES.
a. Annual Statement. Trustor shall keep accurate books and records
in connection with the Property. Trustor, without expense to Beneficiary, shall,
upon receipt of written request from Beneficiary, furnish to Beneficiary an
annual statement of the operation of the Property prepared and certified by
Trustor, showing, in reasonable detail satisfactory to Beneficiary, total rents
received and total expenses together with an annual balance sheet and profits
and loss statement, within one hundred twenty (120) days after the close of each
fiscal year of Trustor.
b. Offset Certificates. Trustor, within five (5) business days upon
request in person or within ten (10) days upon request by mail, shall furnish a
written statement duly acknowledged of all amounts due on any indebtedness
secured hereby, whether for principal or interest on the Note or otherwise, and
stating whether any offsets or defenses exist against the indebtedness secured
by this Deed of Trust and covering such other matters with respect to any such
indebtedness as Beneficiary may reasonably require. If Trustor fails to furnish
such a statement, Beneficiary may prepare and furnish such a statement which
shall be deemed true and correct and may be relied on by third parties as such.
17 TRUSTEE'S COSTS AND EXPENSES; GOVERNMENTAL CHARGES. Trustor shall pay
all costs, fees and expenses of Trustee, its agents and counsel in connection
with the performance of its duties under this Deed of Trust, including without
limitation the cost of any trustee's sale guaranty or other title insurance
coverage ordered in connection with any sale or foreclosure proceedings
hereunder, and shall pay all taxes (except federal and state income taxes) or
other governmental charges or impositions imposed by any governmental authority
on Trustee or Beneficiary by reason of its interest in the Note or this Deed of
Trust.
18 NOTIFY LENDER OF DEFAULT. Trustor shall notify Beneficiary in writing
within five (5) days of the occurrence of any Event of Default or other event
which, upon the giving of notice or the passage of time or both, would
constitute an Event of Default.
EVENTS OF DEFAULT
The existence or occurrence of any one or more of the following events
shall constitute an event of default ("Event of Default") hereunder (including,
if Trustor consists of more than one person or entity, the occurrence of any of
such events with respect to any one or more of such persons or entities):
19 PAYMENT AND PERFORMANCE OBLIGATIONS. Failure to make any payment of
principal, interest or late charges on the Note when and as the same shall
become due and payable, whether at maturity or by acceleration or as part of any
prepayment or otherwise, or default in the performance of any of the covenants
or agreements of Trustor contained herein, if any monetary default shall not
have been cured within 10 days after notice thereof and any non-monetary default
shall not have been cured within 30 days after notice thereof (unless the
default cannot be cured within 30 days and Trustor commences a cure within the
30 days and diligently prosecutes the cure until it is complete, in which event,
Trustor shall have a reasonable amount of time after the 30 days to cure a
non-monetary default).
20 RECEIVERSHIP. The appointment, pursuant to an order of a court of
competent jurisdiction, of a trustee, receiver or liquidator of the Property or
any part thereof, or of Trustor, or any termination or voluntary suspension of
the transaction of business of Trustor, or any attachment, execution or other
judicial seizure of all or any substantial portion of Trustor's assets.
21 BANKRUPTCY OR INSOLVENCY. Trustor being insolvent by being unable to
pay debts when due or by having liabilities in excess of assets; or Trustor
committing an act of bankruptcy, making a general assignment
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for the benefit of creditors, or the filing by or against Trustor of a voluntary
or involuntary petition in bankruptcy or for the appointment of a receiver (and
any involuntary petition is not dismissed within 90 days from the filing
thereof); or if there commences under any law relating to bankruptcy,
insolvency, reorganization or relief of debtors, proceedings affecting the
Property or for the composition, extension, arrangement or adjustment of any of
Trustor's obligations (and any involuntary petition is not dismissed within 90
days from the filing thereof); or if Trustor's business is discontinued as a
going concern or is suspended; or if a writ of attachment, execution, or any
similar process is issued or levied against any significant part of Trustor's
property that is not released, stayed, bonded or vacated within a reasonable
time after its issue or levy; or if Beneficiary shall deem itself insecure with
respect to Trustor's performance of any of its obligations to Beneficiary
hereunder or otherwise.
22 TERMINATION. If Trustor is other than a natural person or persons,
without the prior written consent of Beneficiary in each case, the voluntary or
involuntary dissolution or termination of existence of Trustor.
23 TAX EVENT. The imposition of a tax, other than a state or federal
income tax, on or payable by Trustee or Beneficiary by reason of its ownership
of the Note or this Deed of Trust, and Trustor not promptly paying said tax, or
it being illegal for Trustor to pay said tax.
24 MISREPRESENTATION OF FACT. Willful or negligent misrepresentations of
material fact by Trustor in any document submitted to Beneficiary in support of
the loan represented by the Note or in connection with the Note and this Deed of
Trust.
25 OTHER. Any other event occurring which, under this Deed of Trust, or
under the Note constitutes a default by Trustor hereunder or thereunder or gives
Beneficiary the right to accelerate the maturity of the indebtedness (or any
part thereof) secured hereby, including but not limited to a prohibited transfer
as described in Paragraph 15 above.
REMEDIES
Upon the occurrence of any Event of Default, Trustee and Beneficiary shall
have the following rights and remedies, subject to Trustee or Beneficiary giving
Trustor ten (10) days' written notice for a monetary default and thirty (30)
days' written notice for a non-monetary default; provided, however, that Trustor
shall have a reasonable amount of time after the 30 days for a cure of a
non-monetary default, if the default cannot be cured within 30 days and Trustor
commences a cure within 30 days and diligently prosecutes the cure until it is
completed:
26 CONCURRENT CURE PERIODS. All notice and cure periods provided in this
Deed of Trust, the Note or any other document or instrument evidencing or
securing the Note shall run concurrently with any notice or cure periods
provided by law. Without limiting the foregoing, Beneficiary shall be entitled
to exercise its remedies under this Deed of Trust if any event occurs which,
with the giving of notice or the passage of time, or both, would constitute an
Event of Default under this Deed of Trust or would entitle Beneficiary to
accelerate the indebtedness evidenced by the Note. Furthermore, the recording
and mailing to Trustor of a notice or breach and election to sell shall
constitute notice of such failure to perform under this Deed of Trust, the Note
or any other loan document.
27 ACCELERATION. Beneficiary may declare the entire principal amount of
the Note then outstanding (if not then due and payable), and accrued and unpaid
interest thereon, and all other sums or payments required thereunder, to be due
and payable immediately.
28 ENTRY. Irrespective of whether Beneficiary exercises the option
provided in Paragraph 28 herein, Beneficiary in person or by agent or by
court-appointed receiver may, without notice to Trustor, enter on, take
possession of, manage and operate the Property or any part thereof and do all
things necessary or appropriate in Beneficiary's sole discretion in connection
therewith, including without limitation making and enforcing, and if the same be
subject to modification or cancellation, modifying or cancelling leases upon
such terms or conditions as Beneficiary deems proper, obtaining and evicting
tenants, and fixing or modifying rents, contracting for and making repairs and
alterations, and doing any and all other acts which Beneficiary deems proper to
protect the security hereof; and either with or without so taking possession, in
its own name or in the name of Trustor, xxx for or otherwise collect and receive
the Rents and Profits, including those past due and unpaid, and apply the same
less costs and expenses of operation and collection, including reasonable
attorneys' fees, upon any indebtedness secured
111
hereby, and in such order as Beneficiary may determine. Upon request of
Beneficiary, Trustor shall assemble and make available to Beneficiary at the
site of the Property any of the Property which has been removed therefrom. The
entering upon and taking possession of the Property, or any part thereof, and
the collection of any Rents and Profits and the application thereof as aforesaid
shall not cure or waive any default theretofore or thereafter occurring or
affect any notice or default hereunder or invalidate any act done pursuant to
any such default or notice, and, notwithstanding continuance in possession of
the Property or any part thereof by Beneficiary, Trustor or a receiver, and the
collection, receipt and application of the Rents and Profits, Beneficiary shall
be entitled to exercise every right provided for in this Deed of Trust or by law
or in equity upon or after the occurrence of an Event of Default, including
without limitation the right to exercise the power of sale. Any of the actions
referred to in this Paragraph 28 may be taken by Beneficiary irrespective of
whether any notice of default or election to sell has been given hereunder and
without regard to the adequacy of the security for the indebtedness hereby
secured.
29 JUDICIAL ACTION. Beneficiary may bring an action in any court of
competent jurisdiction to foreclose this instrument as a realty mortgage or to
enforce any of the terms hereof, subject to any non-recourse provision in this
Deed of Trust.
30 POWER OF SALE. Beneficiary may elect to cause the Property or any part
thereof to be sold under the power of sale herein granted in any manner
permitted by applicable law. In connection with any sale or sales hereunder,
Beneficiary may elect to treat any of the Property which consists of a right in
action or which is property that can be severed from the Property or any
improvements thereon without causing structural damage thereto as if the same
were personal property, and dispose of the same in accordance with applicable
law, separate and apart from the sale of real property. Sales hereunder of any
personal property only shall be conducted in any manner permitted by the Uniform
Commercial Code of the state in which the Property is located. Where the
Property consists of real property and personal property located on or within
the real property, Beneficiary may elect in its discretion to dispose of both
the real and personal property together in one sale pursuant to real property
law as permitted by the Uniform Commercial Code of the state in which the
Property is located. Should Beneficiary elect to sell the Property, or any part
thereof, which is real property or which Beneficiary has elected to treat as
real property as provided above, Beneficiary or Trustee shall give such notice
of default and election to sell as may then be required by law. Thereafter, upon
the expiration of such time and the giving of such notice of sale as may then be
required by law, and without the necessity of any demand on Trustor, Trustee, at
the time and place specified in the notice of sale, shall sell said real
property or part thereof at public auction to the highest bidder for cash in
lawful money of the United States. Trustee may, and upon request of Beneficiary
shall, from time to time, postpone any sale hereunder by public announcement
thereof at the time and place notice therefor. If the Property consists of
several lots, parcels or items of property, Beneficiary may: (i) designate the
order in which such lots, parcels or items shall be offered for sale or sold;
or, (ii) elect to sell such lots, parcels or items through a single sale, or
through two or more successive sales, or in any other manner Beneficiary deems
in its best interest. Any person, including Trustor, Trustee or Beneficiary, may
purchase at any sale hereunder, and Beneficiary shall have the right to purchase
at any sale hereunder by crediting upon the bid price the amount of all or any
part of the indebtedness hereby secured. Should Beneficiary desire that more
than one sale or other disposition of the Property be conducted, Beneficiary
may, at its option, cause the same to be conducted simultaneously, or
successively, on the same day, or at such different days or times and in such
order as Beneficiary may deem to be in its best interests, and no such sale
shall terminate or otherwise affect the lien of this Deed of Trust on any part
of the Property not sold until all indebtedness secured hereby has been fully
paid. In the event Beneficiary elects to dispose of the Property through more
than one sale, Trustor agrees to pay the costs and expenses of each such sale
and of any judicial proceedings wherein the same may be made, including
reasonable compensation to Trustee and Beneficiary, their agents and counsel,
and to pay all expenses, liabilities and advances made or incurred by Trustee in
connection with such sale or sales, together with interest on all such advances
made by Trustee at the lower of the rate set forth in the Note or the maximum
rate permitted by law to be charged by Trustee. Upon any sale hereunder, Trustee
shall execute and deliver to the purchaser or purchasers a deed or deeds
conveying the property so sold, but without any covenant or warranty whatsoever,
express or implied, whereupon such purchaser or purchasers shall be let into
immediate possession; and the recitals in any such deed or deeds of facts, such
as default, the giving of notice of default and notice of sale, and other facts
affecting the regularity or validity of such sale or disposition, shall be
conclusive proof of the truth of such facts and any such deed or deeds shall be
conclusive against all persons as to such facts recited therein.
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31 PROCEEDS OF SALE. The proceeds of any sale made under or by virtue of
this Deed of Trust, together with all other sums which then may be held by
Trustee or Beneficiary under this Deed of Trust, shall be applied as follows:
FIRST: To the payment of costs and expenses of sale and of any
judicial proceedings wherein the same may be made, including reasonable
compensation to the agents and counsel of Trustee and Beneficiary, and to the
payment of all expenses, liabilities and advances made or incurred by Trustee
under this Deed of Trust, together with interest on all advances made by Trustee
at the lower of the interest rate set forth in the Note or the maximum rate
permitted by law to be charged by Trustee.
SECOND: To the payment of any and all sums expended by Beneficiary
under the terms of this Deed of Trust, not then repaid, with accrued interest at
the rate set forth in the Note, and all other sums (except advances of principal
and interest thereon) required to be paid by Trustor pursuant to any provisions
of this Deed of Trust, or the Note, including without limitation all expenses,
liabilities and advances made or incurred by Beneficiary under this Deed of
Trust or in connection with the enforcement thereof, together with interest
thereon as herein provided.
THIRD: To the payment of the entire amount then due, owing or unpaid
for principal and interest upon the Note with interest on the unpaid principal
at the rate set forth therein from the date of advancement thereof until the
same is paid in full.
FOURTH: The remainder, if any, to the person or persons legally
entitled thereto.
32 WAIVER OF LAWS. To the fullest extent Trustor may do so, Trustor agrees
that it will not at any time insist upon, plead, claim or take the benefit or
advantage of any law now or hereafter in force providing for any appraisement,
valuation, stay, extension or redemption, and Trustor, for itself and its
representatives, successors and assigns, and for any and all persons ever
claiming any interest in the Property, to the extent permitted by law, hereby
waives and releases all rights of redemption, valuation, exemption,
appraisement, stay of execution, notice of intention to mature or declare due
the whole or any part of the indebtedness secured hereunder, notice of election
to mature or declare due the whole or any part of such indebtedness and all
rights to a marshaling of the assets of Trustor, including the Property, or to a
sale in inverse order of alienation in the event of foreclosure of the liens and
security interests hereby created. Trustor shall not have or assert any right
under any statute or rule of law pertaining to the marshaling of assets, sale in
inverse order of alienation, the exemption of homestead, the administration of
estates of decedents or other matters whatever to defeat, reduce or affect the
right of Beneficiary under the terms of the Deed of Trust to a sale of the
Property for the collection of such indebtedness without any prior or different
resort for collection, or the right of Beneficiary under the terms of the Deed
of Trust to the payment of such indebtedness out of the proceeds of sale of the
Property in preference to every other claimant whatever. If any law referred to
in this Section and now in force, of which Trustor or its representatives,
successors and assigns and such other persons claiming any interest in the
Property might take advantage despite this Section, shall hereafter be repealed
or cease to be in force, such law shall not thereafter be deemed to preclude the
application of this Section.
33 REMEDIES CUMULATIVE. No remedy herein conferred upon or reserved to
Trustee or Beneficiary is intended to be exclusive of any other remedy herein or
by law provided, but each shall be cumulative and shall be in addition to every
other remedy given hereunder or now or hereafter existing at law, in equity or
otherwise. No delay or omission of Trustee or Beneficiary to exercise any right
or power accruing upon any Event of Default shall impair any right or power or
shall be construed to be a waiver of any Event of Default or any acquiescence
therein; and every power and remedy given by this Deed of Trust to Trustee or
Beneficiary may be exercised from time to time as often as may be deemed
expedient by Trustee or Beneficiary. If there exists additional security for the
performance of the obligations secured hereby, the holder of the Note, at its
sole option, and without limiting or affecting any of its rights or remedies
hereunder, may exercise any of the rights and remedies to which it may be
entitled hereunder either concurrently with whatever rights and remedies it may
have in connection with such other security or in such order as it may
determine. Notwithstanding any other provision of this Deed of Trust,
Beneficiary shall have all remedies available at law, in equity or otherwise.
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MISCELLANEOUS
34 SEVERABILITY. In the event any one or more of the provisions contained
in this Deed of Trust shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Deed of Trust, but this Deed of
Trust shall be construed as if such invalid, illegal or unenforceable provision
had never been contained herein.
35 CERTAIN CHARGES. Trustor agrees to pay Beneficiary for each statement
of Beneficiary (other than for the standard periodic statement of Beneficiary)
as to the obligations secured hereby, furnished at Trustor's request, the fees,
costs and expenses incurred by Beneficiary in connection with each statement.
Trustor further agrees to pay the charges of Beneficiary for any other service
rendered Trustor, or on its behalf, connected with this Deed of Trust or the
indebtedness secured hereby, including without limitation the delivery to an
escrow holder of a request for full or partial reconveyance of this Deed of
Trust, transmitting to an escrow holder moneys secured hereby, changing its
records pertaining to this Deed of Trust and indebtedness secured hereby to show
a new owner of the Property, and replacing an existing policy of insurance held
hereunder with another such policy.
36 NOTICES. All notices expressly provided hereunder to be given by
Beneficiary to Trustor and all notices and demands of any kind or nature
whatsoever which Trustor may be required or may desire to give to or serve on
Beneficiary shall be in writing and shall be (i) hand-delivered, effective upon
receipt, (ii) transmitted by telecopier, effective upon receipt, with the
original mailed the same date by first class mail, postage prepaid, (iii) sent
by United States Express Mail or by private overnight courier, effective upon
receipt, or (iv) served by certified mail, postage prepaid, return receipt
requested and addressed to such party at the address set forth above, or to such
other address(es) or addressee(s) as the party to be served with notice may have
furnished in writing to the other party, effective three (3) days after mailing.
37 TRUSTOR NOT RELEASED. Extension of the time for payment or modification
of the terms of payment of any sums secured by this Deed of Trust granted by
Beneficiary to any successor in interest of Trustor shall not operate to
release, in any manner, the liability of the original Trustor. Beneficiary shall
not be required to commence proceedings against such successor or refuse to
extend time for payment or otherwise modify the terms of payment of the sums
secured by the Deed of Trust by reason of any demand made by the original
Trustor. Without affecting the liability of any person, including Trustor, for
the payment of any indebtedness secured hereby, or the lien of this Deed of
Trust on the remainder of the Property for the full amount of any such
indebtedness and liability unpaid, Beneficiary and Trustee are respectively
empowered as follows: Beneficiary may from time to time and without notice: (i)
release any person liable for the payment of any of the indebtedness; (ii)
extend the time or otherwise alter the terms of payment of any of the
indebtedness; (iii) accept additional real or personal property of any kind as
security thereof, whether evidenced by deeds of trust, mortgages, security
agreement or any other instrument of security; or, (iv) alter, substitute or
release any property securing the indebtedness. Trustee may, at any time, and
from time to time, upon the written request of Beneficiary: (i) consent to the
making of any map or plat of the Property or any part thereof; (ii) join in
granting any easement or creating any restriction thereon; (iii) join in any
subordination or other agreement affecting this Deed of Trust or the lien or
charge hereof; or, (iv) reconvey, without any warranty, all or part of the
Property.
38 RECONVEYANCE. Upon the payment in full of all sums and the performance
of all obligations secured by this Deed of Trust, Beneficiary shall request
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. Upon
payment of its fees and any other sums owing to it under this Deed of Trust,
Trustee shall reconvey the Property without warranty to the person or persons
legally entitled thereto. Such person or persons shall pay all costs of
recordation, if any. The recitals in such conveyance of any matters of facts
shall be conclusive proof of the truthfulness thereof. The grantee in such
reconveyance may be described as "the person or persons legally entitled
thereto."
39 STATUTE OF LIMITATIONS. The pleading of any statute of limitations as a
defense to any and all obligations secured by this Deed of Trust is hereby
waived to the fullest extent permitted by law.
40 EFFECT AS DEED OF TRUST. Trustor acknowledges that it is the intent of
the parties hereto that this Deed of Trust qualify and operate as a Deed of
Trust upon real property pursuant to the laws of the jurisdiction where the
Property is located. Trustor agrees that in the event that a court of competent
jurisdiction finds that this
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Deed of Trust is ineffective, unenforceable or void as a Deed of Trust pursuant
to the laws of the jurisdiction where the Property is located, this Deed of
Trust shall be construed as a realty mortgage wherein Trustor is the mortgagor
and Beneficiary is the mortgagee, and may thereby be foreclosed after default or
breach hereunder in accordance with and pursuant to the laws of the jurisdiction
where the Property is located (as amended at the time of such default or
breach). In such event and to effectuate a realty mortgage effective as of the
date hereof, Trustor as mortgagor does hereby forever grant, bargain, sell,
convey, assign, transfer and mortgage the Property to Beneficiary and its
successors and assigns as mortgagee.
41 INTERPRETATION. Wherever used in this Deed of Trust, unless the context
otherwise indicates a contrary intent, or unless otherwise specifically provided
herein, the word "Trustor" shall mean and include Trustor and any subsequent
owner or owners of the Property, and the word "Beneficiary" shall mean and
include not only the original Beneficiary hereunder but also any future owners
and holders, whether in whole or in part, including pledgees, of the Note
secured hereby. In this Deed of Trust whenever the context so requires, the
masculine gender includes the feminine and/or neuter, and the neuter includes
the feminine and/or masculine, and the singular number includes the plural and
conversely. In this Deed of Trust, the use of the word "including" shall not be
deemed to limit the generality of the term or clause to which is has reference,
whether or not non-limiting language (such as "without limitation," or "but not
limited to," or words of similar import) is used with reference thereto, but
rather could reasonably fall within the broadest scope of such general
statement, term or matter. The captions and headings of the paragraphs of this
Deed of Trust are for convenience only and are not to be used to interpret,
define or limit the provisions of this Deed of Trust.
42 CONSENT; DELEGATION TO SUB-AGENTS. The granting or withholding of
consent by Beneficiary to any transaction as required by the terms hereof shall
not be deemed a waiver of the right to require consent to future or successive
transactions. Wherever a power of attorney is conferred upon Beneficiary
hereunder, it is understood and agreed that such power is conferred with full
power of substitution, and Beneficiary may elect in its sole discretion to
exercise such power itself or to delegate such power, or any part thereof, to
one or more sub-agents.
43 SUCCESSORS AND ASSIGNS. All of the grants, obligations, covenants,
agreements, terms, provisions and conditions herein shall run with the land and
shall apply to, bind and inure to the benefit of, the heirs, administrators,
executors, legal representatives, successors and assigns of Trustor and the
successors in trust of Trustee and the endorsees, transferees, successors and
assigns of Beneficiary. In the event Trustor is composed of more than one party,
the obligations, covenants, agreements, and warranties contained herein as well
as the obligations arising therefrom are and shall be joint and several as to
each such party.
44 GOVERNING LAW. The loan secured by this Deed of Trust is made pursuant
to, and shall be construed and governed by, the laws of the jurisdiction where
the Property is located, and that the exercise by Beneficiary of the power of
sale by virtue of this Deed of Trust shall be construed and governed by the laws
of the jurisdiction where the Property is located.
45 SUBSTITUTION OF TRUSTEE. Beneficiary may remove Trustee at any time or
from time to time and appoint a successor trustee, and upon such appointment,
all powers, rights, duties and authority of Trustee, as aforesaid, shall
thereupon become vested in such successor. Such substitute trustee shall be
appointed by written instrument duly recorded in the county or counties where
the real property covered hereby is located, which appointment may be executed
by any authorized agent of Beneficiary or in any other manner permitted by
applicable law.
46 NO WAIVER. No failure or delay by Beneficiary in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. No waiver, consent or approval of any kind by Beneficiary shall be
effective unless contained in writing, signed and delivered by Beneficiary. No
notice to or demand on Trustor in any case shall entitle Trustor to any other
notice or demand in similar or other circumstances, nor shall such notice or
demand constitute a waiver of the rights of Beneficiary to any other or further
actions.
47 BENEFICIARY NOT PARTNER OF TRUSTOR; TRUSTOR TO INDEMNIFY BENEFICIARY.
The exercise by Beneficiary of any of its rights, privileges or remedies
conferred hereunder or under the Note or under applicable
115
law, shall not be deemed to render Beneficiary a partner or a co-venturer with
the Trustor or with any other person. Trustor shall indemnify Beneficiary
against any claim by any third party for any injury, damage or liability of any
kind arising out of any failure of Trustor to perform its obligations in this
transaction, shall notify Beneficiary of any lawsuit based on such claim, and at
Beneficiary's election, shall defend Beneficiary therein at Trustor's own
expense by counsel satisfactory to Beneficiary or shall pay the Beneficiary's
cost and attorneys' fees if Beneficiary chooses to defend itself on any such
claim. This paragraph shall not apply to any claim caused by the negligence or
willful misconduct of Beneficiary.
48 TIME OF ESSENCE. Time is of the essence of this Deed of Trust and each
and all of its terms and provisions.
49 ENTIRE AGREEMENT. This Deed of Trust, the Note, and that certain
Purchase Agreement for Real and Personal Property dated March 28, 2002, and any
other instruments securing payment of the Note, if any, constitute the entire
agreement between Trustor and Beneficiary and none of the foregoing may be
modified or amended in any manner other than by supplemental written agreement
executed by Trustor and Beneficiary; provided, however, that all written
representations of Trustor, and of any partner, principal or agent of Trustor,
previously made to Beneficiary shall be deemed to have been made to induce
Beneficiary to make the loan secured hereby and to enter into the transaction
evidenced hereby and by the Note, and shall survive the execution hereof and the
closing pursuant hereto. This Deed of Trust cannot be changed or modified except
by written agreement signed by both Trustor and Beneficiary.
50 NO THIRD PARTY BENEFITS. This Deed of Trust, the Note and the other
Related Agreements, if any, are made for the sole benefit of Trustor and
Beneficiary and their successors and assigns, and convey no other legal interest
to any party under or by reason of any of the foregoing.
51 SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT. Any leasehold estate
against the Property shall be and is hereby made subject and subordinate in
every respect to the lien of this Deed of Trust, and to all the provisions
hereof, to all advances made or to be made under this Deed of Trust or the Note,
and to any increases, renewals, modifications, or replacements of this Deed of
Trust or the Note; provided, however, that (a) any lessee's right to quiet
possession of the leasehold estate shall not be disturbed by Beneficiary so long
as the lessee is not in default under the lease that creates the leasehold
estate, and so long as the lessee shall pay the rent and observe and perform all
of the provisions of the lease, unless the lease is otherwise terminated
pursuant to its terms, and (b) in the event Beneficiary obtains title to the
Property through foreclosure, exercise of power of sale, or other remedy under
this Deed of Trust or deed in lieu of foreclosure, the lessee shall continue
occupancy of the leasehold estate under the same terms and conditions of the
lease and shall attorn to Beneficiary, its successors and assigns, or to the
purchaser under a foreclosure or exercise of power of sale, or to the grantee of
a deed in lieu of foreclosure, to the same extent and with the same force as if
Beneficiary or such other party were the lessor under the leasehold estate.
Under such circumstances, however, Beneficiary shall not be (a) liable for any
act or omission of the lessor of the leasehold estate; or (b) subject to any
offsets or defenses which the lessee might have against the lessor; or (c) bound
by any rent or additional rent which the lessee might have paid beyond that due
for the current month to the lessor; or (d) bound by any amendment or
modifications of the lease made after the date of this Deed of Trust without
Beneficiary's prior written consent.
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IN WITNESS WHEREOF, the undersigned have executed this Deed of Trust as of
the date set forth above.
TRUSTOR:
NZ TRUST, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ SNOWFLAKE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ MILKY RANCH, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ SILVER CREEK, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ XXXXXX CITY, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
117
NZ NEW MEXICO LAND, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
SIGNATURES CONTINUED ON FOLLOWING PAGE
118
NZ URANIUM, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ TRAVERTINE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ OIL AND GAS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ MINERALS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ HISTORY AND ARTIFACTS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NOTARY ON FOLLOWING PAGE
119
STATE OF ARIZONA )
) ss.
County of Maricopa)
The foregoing instrument was acknowledged before me this 28th day of
March, 2002 by Xxxxxx X. Xxxxxxx, in his capacity as Manager for and on behalf
of each of the following entities:
NZ TRUST, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ SNOWFLAKE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ MILKY RANCH, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ SILVER CREEK, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ XXXXXX CITY, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ NEW MEXICO LAND, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ URANIUM, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ TRAVERTINE, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ OIL AND GAS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ MINERALS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY
NZ HISTORY AND ARTIFACTS, LLC, AN ARIZONA LIMITED LIABILITY COMPANY.
/s/ Xxxxxx X. Xxxxxx
--------------------------------
Notary Public
My Commission expires:
March 25, 2004
120
EXHIBIT 1-C
SECURITY AGREEMENT
THIS SECURITY AGREEMENT is made and delivered as of the 28th day of March,
2002, collectively by all of the following companies:
NZ Trust, LLC, an Arizona limited liability company
NZ Snowflake, LLC, an Arizona limited liability company
NZ Milky Ranch, LLC, an Arizona limited liability company
NZ Silver Creek, LLC, an Arizona limited liability company
NZ Xxxxxx City, LLC, an Arizona limited liability company
NZ New Mexico Land, LLC, an Arizona limited liability company
NZ Uranium, LLC, an Arizona limited liability company
NZ Travertine, LLC, an Arizona limited liability company
NZ Oil and Gas, LLC, an Arizona limited liability company
NZ Minerals, LLC, an Arizona limited liability company
NZ History and Artifacts, LLC, an Arizona limited liability company,
which together shall hereafter be referred to collectively as "BORROWER", to and
for the benefit of NZ Corporation, an Arizona corporation, NZ Development
Corporation, an Arizona corporation, and NZU Corporation, a New Mexico
corporation (collectively referred to hereinafter as "LENDER").
R E C I T A L S:
A. Lender has agreed to make a loan to Borrower in the amount of
$7,360,000.00 (the "LOAN") pursuant to and in accordance with the terms,
provisions and conditions set forth in that certain Purchase Agreement for Real
and Personal Property dated March 28, 2002, by and between Borrower and Lender
(the "LOAN AGREEMENT"). Borrower is executing a certain Promissory Note of even
date herewith (the "NOTE") payable to the order of Lender to evidence the Loan.
The Note is secured by, among other things, a certain Deed of Trust of even date
herewith (the "DEED OF TRUST") made by Borrower for the benefit of Lender
covering the real estate described in EXHIBIT A attached hereto (the
"PROPERTY"). All capitalized terms which are not defined herein shall have the
meanings ascribed thereto in the Loan Agreement.
B. A condition precedent to Lender's extension of the Loan to Borrower is
the execution and delivery by Borrower of this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:
1. CREATION OF SECURITY INTEREST. Borrower hereby grants to Lender a
security interest in and mortgages the property owned by Borrower (specifically
excluding therefrom any property owned by any tenant of the Property) and
described as follows (hereinafter referred to collectively as the "COLLATERAL"):
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(a) All apparatus, machinery, devices, fixtures, communication
devices, systems and equipment, fittings, appurtenances, equipment,
appliances, furniture, furnishings, appointments, accessories,
landscaping, plants and all other items of personal property located at
the Property or used in the operation or maintenance of the Property or
any business or operation conducted thereon. All fixtures and equipment
now or hereafter installed for use in the operation of the buildings,
structures and improvements now or hereafter on the Property, including
but not limited to, all lighting, heating, cooling, ventilating,
air-conditioning, plumbing, sprinkling, incinerating, refrigerating,
air-cooling, lifting, fire extinguishing, cleaning, entertaining,
security, communicating and electrical and power systems, and the
machinery, appliances, fixtures and equipment pertaining thereto, all
awnings, ovens, stoves, refrigerators, dishwashers, disposals, carpeting,
switchboards, engines, motors, tanks, pumps, screens, storm doors and
windows, shades, floor coverings, ranges, washers, dryers, disposals,
cabinets, furniture, partitions, conduits, ducts and compressors, and all
elevators and escalators and the machinery and appliances, fixtures and
equipment pertaining thereto.
(b) Any and all revenues, receivables and income now owned or
hereafter acquired and arising from or out of the Property and/or the
businesses and operations conducted thereon.
(c) Any and all other personal property of any kind, nature or
description, whether tangible or intangible, (including without
limitation, any and all goods, accounts, management, maintenance, service
and other contract rights, franchises, licenses, permits, chattel paper,
money, documents, instruments and general intangibles) of Borrower arising
from, relating to or used in connection with the operation or maintenance
of the Property, whether now owned or hereafter acquired, or in which
Borrower now has or shall hereafter acquire any right, title or interest
whatsoever (whether by xxxx of sale, lease, conditional sales contract, or
other title retention document or otherwise), and all bank, savings,
checking, money market and other depositary accounts of Borrower, and the
balances therein, whether now or hereafter maintained with Lender or any
other institution.
(d) Any and all additions and accessories to all of the foregoing
and any and all proceeds (including proceeds of insurance, eminent domain
or other governmental takings and tort claims), renewals, replacements and
substitutions of all of the foregoing.
(e) All property listed on EXHIBIT B attached hereto and
incorporated herein by this reference.
(f) All of the books and records pertaining to the foregoing.
2. SECURED OBLIGATIONS. The security interest created herein is given as
security for the payment of all indebtedness and the performance and observance
of all covenants, conditions, agreements, representations, warranties and other
liabilities and obligations of Borrower or any other obligor to or benefitting
Lender which are evidenced, secured or created
122
by the Loan Agreement, this Agreement, the Note or any of the other Loan
Documents, together with all amendments and modifications hereof and thereof
(collectively, the "OBLIGATIONS").
3. BORROWER'S COVENANTS. Borrower covenants and agrees as follows:
(a) The Collateral shall be kept at the Property and will be used
only in the conduct of Borrower's business and operation of the buildings,
structures and improvements now or at any time hereafter on the Property.
(b) The Collateral shall not be misused, wasted or allowed to
deteriorate, except for the ordinary wear and tear resulting from its use.
(c) The Collateral shall at all times be insured against loss,
damage, theft, and such other risks as Lender may require in such amounts,
with such companies, under such policies, in such form and for such
periods as shall be reasonably satisfactory to Lender, and each policy
shall provide that the loss thereunder and the proceeds payable thereunder
shall be payable to Lender as its interest may appear.
(d) The Collateral shall not be used in violation of any applicable
law or regulation.
(e) The Collateral may be examined and inspected by Lender at any
reasonable time, wherever located.
(f) Any of the Collateral which becomes worn out or is damaged shall
be promptly replaced with items of equal or greater value and utility.
(g) Borrower shall not sell, transfer, lease or otherwise dispose of
any of the Collateral or any interest therein or offer to do so other than
in the ordinary course of Borrower's business without the prior written
consent of Lender (which shall not be unreasonably withheld), or permit
anything to be done that may impair the value of any of the Collateral or
the security intended to be afforded by this Agreement.
(h) Borrower shall pay all taxes and assessments upon the Collateral
or for its use or operation prior to any delinquency thereof.
(i) Borrower shall sign and execute alone or with Lender any
financing statement or other document or procure any documents and pay all
costs, expenses and fees, including reasonable attorneys' fees, necessary
to protect the security interest under this Agreement against the rights,
interests or claims of third persons.
(j) Borrower shall reimburse Lender for all costs, expenses and
fees, including, without limitation, court costs and reasonable attorneys'
fees, incurred by or for Lender for any action taken by or for Lender to
remedy an Event of Default of Borrower hereunder or under the other Loan
Documents, together with interest accruing
123
thereon at the Default Rate commencing on the date that is ten days from
the date demand for payment is made by Lender until repaid to Lender.
(k) Borrower shall (i) from time to time promptly execute and
deliver to Lender all such other assignments, certificates, supplemental
writings, and financing statements, and do all other reasonable acts or
things as Lender may request in order to more fully evidence and perfect
the security interest created herein; (ii) punctually and properly perform
all of its agreements and obligations under the Loan Agreement, the Note,
the Deed of Trust and the other Loan Documents; (iii) pay the indebtedness
secured hereby in accordance with the terms thereof and in accordance with
the terms of the Loan Agreement, the Note, the Deed of Trust and the other
Loan Documents; (iv) promptly furnish Lender with any information or
writings which Lender may request concerning the Collateral; (v) allow
Lender to inspect all records of Borrower relating to the Collateral, the
Property, the Obligations and the business and operation of Borrower with
respect to the Collateral or the Property, and to make and take away
copies of such records; (vi) promptly notify Lender of any material
adverse change in any facts or circumstances warranted or represented by
Borrower in this Agreement or in any other writing furnished by Borrower
to Lender in connection with the Collateral, the Obligations or the
business and operation of Borrower or the Property; (vii) promptly notify
Lender of any claim, action or proceeding affecting title to the
Collateral, or any part thereof, or the security interest created herein,
and, at the request of Lender, appear in and defend, at Borrower's
expense, any such action or proceeding; and (viii) promptly, after being
requested by Lender, pay to Lender the amount of all expenses, including
reasonable attorneys' fees and other legal expenses, incurred by Lender in
enforcing the security interest created herein, together with interest
thereon at the Default Rate commencing on the date that is ten days after
the date demand for payment is made by Lender until the date repaid to
Lender.
(l) Borrower shall not, without the prior written consent of Lender,
create any other security interest in, mortgage, pledge, or otherwise
encumber the Collateral, or any part thereof, or permit the same to be or
become subject to any lien, attachment, execution, sequestration, other
legal or equitable process, or any encumbrance of any kind or character,
however, Borrower shall have the right to contest by appropriate
proceedings the validity or amount of any such lien if and only if
Borrower shall, within thirty days after the filing thereof, place a bond
with the Lender in an amount, form, content and issued by a surety
reasonably acceptable to the Lender for the payment of any such lien.
(m) Should any part of the Collateral ever be in any manner
converted by its issuer or maker into another type of property or any
money or other proceeds ever be paid or delivered to Borrower as a result
of Borrower's rights in the Collateral, then all such property, money and
other proceeds shall become part of the Collateral, and Borrower covenants
to forthwith pay or deliver to Lender all of the same which is susceptible
of delivery and, at the same time, if Lender deems it necessary and so
requests, Borrower will properly endorse or assign the same. With respect
to any of such property of a kind requiring any additional security
agreement, financing statement or other writing to
124
perfect a security interest therein in favor of Lender, Borrower will
forthwith execute and deliver to Lender whatever Lender shall deem
necessary or proper for such purpose.
(n) Should any covenant, duty or agreement of Borrower fail to be
performed in accordance with its terms hereunder, Lender may after an
Event of Default, but shall never be obligated to, perform or attempt to
perform such covenant, duty or agreement on behalf of Borrower, and any
amount expended by Lender in such performance or attempted performance
shall become a part of the indebtedness secured hereby, and, upon demand
of Lender, Borrower agrees to pay such amount promptly to Lender, together
with interest accrued thereon at the Default Rate commencing on the date
that is ten days after the date demand for payment is made by Lender until
repaid to Lender.
4. DEFAULT. An "EVENT OF DEFAULT" shall occur under this Agreement upon
the occurrence of (a) a breach by Borrower of any of the covenants, agreements,
representations, warranties or other provisions hereof which is not cured or
waived within the applicable grace or cure period, if any, set forth in the Loan
Agreement, or (b) any other Event of Default described in the Loan Agreement or
any of the other Loan Documents.
5. LENDER'S RIGHTS AND REMEDIES. Upon the occurrence of an Event of
Default, Lender shall have available to it the following rights and remedies:
(a) Right to Assign. Lender may assign this Agreement and, if Lender
does assign this Agreement, the assignee shall be entitled to the
performance of all of Borrower's agreements and obligations under this
Agreement, and the assignee shall be entitled to all the rights and
remedies of Lender under this Agreement. Borrower expressly agrees that it
will assert no claims or defenses it may have against Lender against the
assignee except those available to it pursuant to this Agreement.
(b) Right to Discharge Borrower's Obligations. Lender may, at its
option, discharge taxes, liens or security interests or other encumbrances
at any time levied or placed on the Collateral, may remedy or cure any
default of Borrower under the terms of any lease, rental agreement, or
other document which in any way pertains to or affects Borrower's title to
or interest in any of the Collateral, may pay for insurance on the
Collateral, and may pay for the maintenance and preservation of the
Collateral, and Borrower agrees to reimburse Lender, on demand, for any
payment made or any expense incurred by Lender, including reasonable
attorneys' fees, pursuant to the foregoing authorization, together with
interest at the Default Rate from the date so paid or incurred by Lender
until repaid to Lender, which payments, expenses and interest shall be
secured by this Agreement and by the Deed of Trust and the other Loan
Documents.
(c) Rights as Secured Creditor. Upon the occurrence of an Event of
Default, Lender, in its sole and absolute discretion, and to the fullest
extent permitted under applicable law, may: (a) exercise any one or more
of the rights and remedies afforded to secured parties under the Uniform
Commercial Code in force in the State(s) in which the Collateral is
located, together with any and all other rights and remedies otherwise
provided and available to Lender at law or in equity; (b) enter, with
process of law, any
125
premises where the Collateral (or the books and records of Borrower
related thereto) is or may be located, and without charge or liability to
Lender therefor seize and remove the Collateral (and copies of Borrower's
books and records in any way relating to the Collateral) from said
premises and/or remain upon said premises and use the same (together with
said books and records) for the purpose of collecting, preparing and
liquidating the Collateral, all without cost to Lender; and (c) sell or
otherwise dispose of the Collateral at public or private sale or auction
for cash or credit (which sale or auction may, at the option of Lender,
occur on the premises where the Collateral is located or elsewhere, at no
cost to Lender) and from the proceeds of such sale or disposal retain (i)
all costs and charges incurred by Lender in taking and causing the removal
and sale or disposal of the Collateral, including reasonable attorneys'
fees; and (ii) an amount equal to all other Obligations; provided,
however, that Borrower shall be credited with the net proceeds of such
sale only when such proceeds are actually received by Lender.
(d) Assembly of Collateral; Injunctive Relief. Upon the occurrence
of an Event of Default and after giving effect to any applicable notice
and cure periods, Borrower, immediately upon demand by Lender, shall
assemble the Collateral and make it available to Lender at a place or
places to be designated by Lender. Borrower hereby acknowledges and agrees
that if Borrower fails to perform, observe or discharge any of its
obligations or liabilities under this Agreement, no remedy of law shall
provide adequate relief to Lender, and that Lender shall be entitled to
temporary and permanent injunctive relief in any such case without the
necessity of posting of bond, surety or other security.
(e) Notice of Collateral Disposition. Any notice required to be
given by Lender of a sale, lease or other disposition of the Collateral or
any other intended action by Lender, deposited in the United States mail,
postage prepaid and duly addressed to Borrower at Borrower's address set
forth in the Deed of Trust not less than ten days prior to such proposed
action, shall constitute commercially reasonable and fair notice to
Borrower thereof.
(f) Matters Regarding Sale of Collateral. Borrower agrees that
Lender may, if Lender deems it reasonable, postpone or adjourn any sale of
Collateral from time to time by an announcement at the time and place of
sale or by announcement at the time and place of such postponed or
adjourned sale, without being required to give a new notice of sale.
Borrower also waives and releases any cause of action and claim against
Lender as a result of Lender's possession, collection or sale of the
Collateral, any liability or penalty for failure of Lender to comply with
any requirement imposed on Lender relating to notice of sale, holding of
sale, or reporting of sale of the Collateral, and any right of Borrower to
redeem the Collateral from such sale. At any sale or sales made pursuant
to this Agreement or in a suit to foreclose the same, the Collateral, at
the option of Lender or its assigns, may be sold (i) in its entirety or
separately, at the same or at different times, and (ii) separate or
together with any foreclosure sale of the collateral covered by the Deed
of Trust in accordance with Section 9-504 of the Uniform Commercial Code,
and the Collateral need not be present at the time or place of sale. At
any such sale, Lender or the holder of the indebtedness hereby secured may
bid for and
126
purchase any of the property sold, notwithstanding that such sale is
conducted by Lender or its attorneys, agents, or assigns, and no
irregularity in the manner of sale or of giving notice shall operate to
preclude Lender from recovering the Obligations.
(g) Replevin. If Lender seeks possession of the Collateral through
replevin or other court action, Borrower hereby irrevocably waives (i) any
bond, surety or security required as an incident to such possession, and
(ii) any demand by Lender for possession of the Collateral prior to the
commencement of any such suit or action.
(h) Enforcement Standards. Lender shall have the right at all times
to enforce the provisions of this Agreement in strict accordance with the
terms hereof, notwithstanding any conduct or custom on the part of Lender
in refraining from so doing at any time or times. The failure of Lender at
any time or times to enforce its rights under said provisions strictly in
accordance with the same shall not be construed or operate as a waiver of
any of the rights and remedies granted Lender hereunder or as having
created a custom in any way or manner contrary to the specific provisions
of this Agreement or as having in any way or manner modified the same. All
rights and remedies of Lender are cumulative and concurrent, and the
exercise of one right or remedy by Lender shall not be deemed a waiver or
release of any other right or remedy.
6. REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants that:
(a) Borrower has authority to execute and deliver this Agreement;
(b) no financing statement covering the Collateral, or any part
thereof, has been filed and remains in effect;
(c) no other security agreement covering the Collateral, or any part
thereof, has been made and no security interest, other than the one herein
created, has attached or been perfected in the Collateral or in any part
thereof;
(d) all information supplied and statements made in any financial or
credit statements or application for credit prior to the execution of this
Agreement are true and correct in all material respects as of the date
hereof; and
(e) at the time Lender's security interest attaches to any of the
Collateral or its proceeds, Borrower will be the lawful owner with the
right to transfer any interest therein, and Borrower will make such
further assurances as to prove title to the Collateral in Lender as may be
required and will defend the Collateral and its proceeds against the
lawful claims and demands of all persons whomsoever.
The delivery at any time by Borrower to Lender of the Collateral shall
constitute a representation and warranty by Borrower that, with respect to such
Collateral, and each item thereof, Borrower is owner of the Collateral and the
matters heretofore represented and warranted in this Paragraph 6 are true and
correct. Further, Borrower, upon the request of Lender, agrees to amend this
Agreement and any and all financing statements filed in connection therewith for
the purpose of
127
setting forth in said Agreement and said financing statements an accurate and
itemized list of the Collateral now generally described herein and in said
financing statements and to include in said accurate and itemized list an
identification of the Collateral by make, model, serial number and other
appropriate descriptive data.
7. SUBROGATION. If the Obligations, or any part thereof, are renewed or
extended, or applied toward the payment of any indebtedness secured by any deed
of trust, mortgage, pledge, security agreement or other lien, Lender shall be
and is hereby subrogated to all of the rights, titles, security interests and
other liens securing the indebtedness so renewed, extended or paid.
8. FURTHER AGREEMENTS.
(a) "Borrower" and "Lender" as used in this Agreement include the
legal representatives, successors and assigns of those parties.
(b) Neither Borrower nor Lender shall be bound by any amendment not
expressed in writing and signed by the party to be bound thereby.
(c) It is expressly intended, understood and agreed: (i) that this
Agreement is made and entered into for the sole protection and benefit of
Lender and Borrower, and their successors and assigns and no other person
or persons shall have any right of action hereunder or rights to the
proceeds of the Loan at any time; (ii) that the proceeds of the Loan do
not constitute a trust fund for the benefit of any third party; and (iii)
that no third party shall under any circumstances be entitled to any
equitable lien on any undisbursed proceeds of the Loan at any time. The
relationship between Lender and Borrower is solely that of a lender and
borrower, and nothing contained herein, or in the Loan Agreement, the
Note, the Deed of Trust or any of the other Loan Documents shall in any
manner be construed as making the parties hereto partners, joint venturers
or as creating any relationship other than lender and borrower.
(d) Except with respect to the creation, perfection, priority and
enforcement of the liens and security interests created hereby, which
shall be construed in accordance with and governed by the laws of the
State of Arizona, the validity and interpretation of this Agreement shall
be construed in accordance with and governed by the laws of the State of
Illinois. In the event that any provision of this Agreement is deemed to
be invalid by reason of the operation of law, or by reason of the
interpretation placed thereon by any administrative agency or any court,
Borrower and Lender shall negotiate an equitable adjustment in the
provisions of the same in order to effect, to the maximum extent permitted
by law, the purpose of this Agreement and the validity and enforceability
of the remaining provisions, or portions or applications thereof, shall
not be affected thereby and shall remain in full force and effect.
(e) To the extent permitted by law, Borrower hereby waives any and
all rights to require marshalling of assets.
128
(f) All notices, demands, requests and other correspondence which
are required or permitted to be given hereunder shall be deemed
sufficiently given when delivered or mailed in the manner and to the
address of Borrower or Lender, as the case may be, as specified in the
Loan Agreement.
(g) This Agreement shall inure to the benefit of Lender and its
successors and assigns and shall be binding upon Borrower and its
successors and assigns.
(h) BORROWER AND LENDER HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY
AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN
RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE)
BETWEEN OR AMONG BORROWER AND LENDER ARISING OUT OF OR IN ANY WAY RELATED
TO THIS AGREEMENT, THE LOAN AGREEMENT, THE DEED OF TRUST, ANY OTHER LOAN
DOCUMENT, OR ANY RELATIONSHIP BETWEEN BORROWER AND LENDER. THIS PROVISION
IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE LOAN DESCRIBED HEREIN
AND IN THE OTHER LOAN DOCUMENTS.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
day and year first above written.
LENDER:
NZ CORPORATION,
an Arizona corporation
By: /s/ Xxxxxx X. Xxxxxx
----------------------------------
Its: Treasurer
-------------------------------
NZ DEVELOPMENT CORPORATION,
an Arizona corporation
By: /s/ Xxxxxx X. Xxxxxx
----------------------------------
Its: Treasurer
-------------------------------
SIGNATURES CONTINUED ON FOLLOWING PAGE
129
NZU, INC.,
a New Mexico corporation
By: /s/ Xxxxxx X. Xxxxxx
----------------------------------
Its: Treasurer
BORROWER:
NZ TRUST, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ SNOWFLAKE, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ MILKY RANCH, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
SIGNATURES CONTINUED ON FOLLOWING PAGE
130
NZ SILVER CREEK, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ XXXXXX CITY, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ NEW MEXICO LAND, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ URANIUM, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
SIGNATURES CONTINUED ON FOLLOWING PAGE
131
NZ TRAVERTINE, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ OIL AND GAS, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ MINERALS, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NZ HISTORY AND ARTIFACTS, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NOTARY ON FOLLOWING PAGE
132
STATE OF ARIZONA )
) ss.
County of Maricopa )
The foregoing instrument was acknowledged before me this 28th day of
March, 2002 by Xxxxxx X. Xxxxxxx, in his capacity as Manager for and on behalf
of each of the following entities:
NZ Trust, LLC, an Arizona limited liability company
NZ Snowflake, LLC, an Arizona limited liability company
NZ Milky Ranch, LLC, an Arizona limited liability company
NZ Silver Creek, LLC, an Arizona limited liability company
NZ Xxxxxx City, LLC, an Arizona limited liability company
NZ New Mexico Land, LLC, an Arizona limited liability company
NZ Uranium, LLC, an Arizona limited liability company
NZ Travertine, LLC, an Arizona limited liability company
NZ Oil and Gas, LLC, an Arizona limited liability company
NZ Minerals, LLC, an Arizona limited liability company
NZ History and Artifacts, LLC, an Arizona limited liability company.
/s/ Xxxxxx X. Xxxxxx
-----------------------------
Notary Public
My commission expires:
March 25, 0000
XXXXX XX Xxxxxxx )
)ss.
County of Maricopa )
SUBSCRIBED AND SWORN TO before me this 29th day of March, 2002, by Xxx
Xxxxxx as treasurer of the NZ Corporation, NZ Development Corporation, and NZU,
Inc.
/s/ Xxxxx X. Xxxxxx
---------------------------------
Notary Public
My commission expires:
10-14-2003
133
EXHIBIT 1-D
PLEDGE AND
COLLATERAL ASSIGNMENT OF LIMITED LIABILITY COMPANY INTEREST
AND SECURITY AGREEMENT
THIS PLEDGE AND COLLATERAL ASSIGNMENT OF LIMITED LIABILITY COMPANY INTEREST AND
SECURITY AGREEMENT (the "SECURITY AGREEMENT") is made this 28th day of March,
2002, by and between NZ Corporation, an Arizona corporation, NZ Development
Corporation, an Arizona corporation, and NZU Corporation, a New Mexico
corporation (collectively "SECURED PARTY"), and New Mexico and Arizona Land
Company, LLC, an Arizona limited liability company ("PLEDGOR").
RECITALS
A. Pledgor is the sole member of the Company (defined hereinbelow)
which Company is indebted to Secured Party in the sum of $7,360,000.00 plus
interest thereon, pursuant to the terms of that certain Promissory Note of even
date hereof, as described in more detail in Section 3, hereinbelow.
B. As security for the indebtedness, Pledgor is willing and has
agreed to give Secured Party a security interest in certain assets hereinafter
described.
COVENANTS
NOW, THEREFORE, intending to be legally bound and for good and
valuable consideration, including granting of credit to the Company and the
mutual promises and covenants of the parties, the receipt, sufficiency and
adequacy of which are hereby acknowledged by all parties, and the performance of
the terms and conditions herein set forth, it is agreed as follows:
1. INCORPORATION OF RECITALS.
The parties hereto agree that the recitals set forth above are true
and correct and are incorporated herein by reference.
2. SECURITY INTEREST.
As security for the payment of the indebtedness more particularly
described in Section 3 of this Security Agreement, Pledgor does hereby pledge,
grant, assign, convey, transfer and set over to Secured Party all of Pledgor's
rights and proceeds in the following described property and does hereby grant to
Secured Party a security interest in and to the following described property
("COLLATERAL"):
(a) All of Pledgor's right, title and interest as a member and
otherwise in and to, without limitation, all distributions, profits and property
due to or payable in respect of Pledgor's interest in the following limited
liability companies and any certificates representing the membership interest
therein:
134
NZ Trust, LLC, an Arizona limited liability company
NZ Snowflake, LLC, an Arizona limited liability company
NZ Milky Ranch, LLC, an Arizona limited liability company
NZ Silver Creek, LLC, an Arizona limited liability company
NZ Xxxxxx City, LLC, an Arizona limited liability company
NZ New Mexico Land, LLC, an Arizona limited liability company
NZ Uranium, LLC, an Arizona limited liability company
NZ Travertine, LLC, an Arizona limited liability company
NZ Oil and Gas, LLC, an Arizona limited liability company
NZ Minerals, LLC, an Arizona limited liability company, and
NZ History and Artifacts, LLC, an Arizona limited liability company.
The above identified limited liability companies are collectively referred to
herein as the "COMPANY";
(b) All proceeds (including insurance proceeds) or products
attributable to or arising from any of the foregoing Collateral;
(c) All other property substituted for any of such property
described above, including the proceeds of all such Collateral.
3. INDEBTEDNESS SECURED HEREBY.
The security interest granted herein by Pledgor secures and shall
secure:
(a) Payment of any and all obligations, liabilities and indebtedness
owed by the Company to Secured Party by virtue of that certain Promissory Note
(the "PROMISSORY NOTE") of even date hereof, in the principal amount of
$7,360,000.00, plus interest thereon, between the Company and Secured Party in
which the parties provided for payment by the Company to Secured Party of the
purchase price of certain real and personal property sold by Secured Party to
the Company;
(b) Performance under (i) that certain Deed of Trust Deed Of Trust,
Assignment Of Rents And Leases And Security Agreement of even date hereof and
(ii) that certain Security Agreement of even date hereof (collectively the
"SECURITY DOCUMENTS"), which together serve as security for the Promissory Note.
(b) Payment of all costs and expenses incurred by Secured Party in
enforcing or protecting its rights with respect to the Collateral, or the
indebtedness secured by the Collateral, including, but not limited to,
reasonable attorney's fees.
For purposes of this Security Agreement, all such sums and
performance obligations secured by the Collateral shall be referred to herein as
"Indebtedness."
135
4. PLEDGOR'S REPRESENTATIONS TO SECURED PARTY.
Pledgor hereby represents the following facts to be true and correct
as of the date hereof:
(a) Pledgor is the true and lawful owner of the Collateral, free and
clear of any lien or encumbrance, except for the security interest created by
this Agreement;
(b) Pledgor is the sole member in each of limited liability
companies comprising the Company;
(c) Pledgor has a good right and full power and authority to grant a
security interest in the Collateral;
(d) There are no advances, liens, security interests or encumbrances
against the Collateral.
(e) This Security Agreement, the pledge of the Collateral pursuant
hereto and the filing of a financing statement in connection therewith create a
valid and perfected first priority security interest in the Collateral securing
the payment of the Indebtedness, and all filings and other actions necessary or
desirable to perfect and protect such security interest have been duly taken;
(f) The execution and performance by Pledgor of this Agreement have
been duly authorized by all necessary entity action of the Company and do not
and will not (i) contravene the Company's organizational governance documents,
(ii) violate any provision of any law, rule, or regulation, or (iii) result in a
breach of or constitute a default under any indenture or loan or credit
agreement or any other agreement, lease, or instrument to which Pledgor or the
Company is a party or by which either of Pledgor or the Company or their
properties may be bound or affected.
(g) This Agreement is a legal, valid and binding obligation of
Pledgor, enforceable in accordance with its terms, except to the extent that
such enforcement may be limited by applicable bankruptcy, insolvency and other
similar laws affecting creditors' rights generally.
(h) No consent of any other person or entity and no authorization,
approval or action by, and no notice to or filing with, any governmental
authority or regulatory body is required (i) for the pledge by Pledgor of the
Collateral pursuant to this Agreement, for the grant by Pledgor of the security
interest granted hereby or for the execution, delivery or performance of this
Agreement by Pledgor, (ii) for the perfection or maintenance of the pledge and
security interest created hereby (including the first priority nature of such
pledge and security interest), or (iii) for the exercise by Secured Party of the
voting or other rights provided for in this Agreement or the remedies in respect
of the Collateral pursuant to this Agreement (except as may be required in
connection with the disposition of any portion of the Collateral by laws
affecting the offer and sale of securities generally).
(i) There are no conditions precedent to the effectiveness of this
Agreement that have not been satisfied or waived.
(j) The pledge of the Collateral hereunder will not result in any
termination of the Company under its limited liability company operating
agreement or the limited liability company act of the state of the Company's
formation.
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5. PLEDGOR'S WARRANTIES AND COVENANTS OF PLEDGOR TO SECURED PARTY.
Pledgor hereby warrants, covenants and agrees that, until the
Indebtedness secured hereby shall have been paid in full or unless it shall have
received a prior written consent of the Secured Party:
(a) Protection and Use of Collateral. Pledgor will keep the
Collateral free from any adverse lien, security interest, or encumbrance (other
than the security interest granted herein, and the lien of ad valorem taxes not
yet delinquent) and in good order and repair and will not waste or destroy the
Collateral or any part thereof; Pledgor will not use the Collateral in violation
of any regulations, statute or ordinance or of any judgments, citations, decrees
or orders of any judicial or administrative authority;
(b) Sale or Impairment of Collateral. Pledgor will not sell or offer
to sell or otherwise transfer, dispose of or encumber the Collateral or any
interest therein, or otherwise dispose of any material asset, for less than its
reasonable fair market value in such manner as to materially diminish the value
of the Collateral, or in any other manner impair any of its assets so as to
substantially diminish the value of the Collateral;
(c) Indemnification. Pledgor will and does hereby agree to indemnify
and hold Secured Party harmless against all claims arising out of or in
connection with Pledgor's ownership or use of the Collateral;
(d) Execute Additional Documents. Pledgor will authorize or sign and
execute alone or with Secured Party any UCC-1 or other financing statement or
any other document or procure any document and pay all necessary costs to
protect the security interest under this Security Agreement against the interest
of third persons. Pledgor will pay the cost of filing the same in all public
offices wherever filing is deemed by Secured Party to be necessary and
desirable. Secured Party is hereby appointed Pledgor's attorney-in-fact to do
all acts and things which Secured Party may deem necessary to perfect and/or
continue the perfection of the security interest created by this Security
Agreement and to protect the Collateral. Pledgor further agrees to pay all costs
and fees for filing any termination statements;
(e) Payment by Company. Pledgor will and does hereby authorize and
direct the Company to make all distributions in respect to the Collateral
directly to the Secured Party until further notice by the Secured Party is
delivered to the Company.
(f) Pledge of Collateral. The pledge of the Collateral and grant of
security interest hereunder will not immediately result in Secured party being
deemed a member of the Company for any purpose, including for any required
capital contribution assessment purpose under the Company's limited liability
company operating agreement. If there is an Event of Default or the Indebtedness
is not otherwise satisfied, to the extent that the Collateral is transferred to
Secured party in satisfaction of the Indebtedness, Secured Party shall become
the sole member of the Company with rights to vote to amend the Company's
limited liability company operating agreement or remove the manager(s) of the
Company.
6. PLEDGOR'S USE OF COLLATERAL.
Prior to payment in full of the Indebtedness, Pledgor may use the
Collateral in the ordinary course of Pledgor's business; provided, upon the
occurrence of an event of default, Pledgor's right to use the Collateral shall
terminate until further written notice from the Secured Party.
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(a) So long as no Default or Event of Default shall have occurred
and be continuing:
(i) Pledgor shall be entitled to exercise or
refrain from exercising any and all voting
and other consensual rights pertaining to
the Collateral or any part thereof for any
purpose not inconsistent with the terms of
this Agreement or the Security Documents.
(ii) Pledgor shall be entitled to receive and
retain any and all periodic cash
distributions paid in respect of the
Collateral, provided, however, that any and
all distributions received after and during
the continuance of a Default or an Event of
Default shall be received in trust for the
benefit of Secured Party, be segregated from
the other property or funds of Pledgor, and
be forthwith delivered to Secured Party in
the same form as so received (with any
necessary endorsement or assignment) and
Secured Party shall apply such funds to the
payment of the Indebtedness.
(b) Upon the occurrence and during the continuance of a Default or
an Event of Default:
(i) All rights of Pledgor to exercise or refrain
from exercising the voting and other
consensual rights which Pledgor would
otherwise be entitled to exercise pursuant
to Section 6(a)(i) and to receive the
distributions which it would otherwise be
authorized to receive and retain pursuant to
Section 6(a)(ii) shall cease, and all such
rights shall thereupon become vested in
Secured Party who shall thereupon have the
sole right to exercise or refrain from
exercising such voting and other consensual
rights and to receive and hold as Collateral
such distributions.
(ii) All distributions which are received by
Pledgor contrary to the provisions of
paragraph (i) of this Section 6(b) shall be
received in trust for the benefit of Secured
Party, shall be segregated from other funds
of Pledgor and shall be forthwith paid over
to Secured Party as Collateral in the same
form as so received (with any necessary
endorsement or assignment).
7. EVENTS OF DEFAULT.
The term "EVENT OF DEFAULT," whenever used in this Security
Agreement, shall mean any one or more of the following events or conditions:
(a) The occurrence of an Event of Default under any provision of
this Security Agreement;
(b) The occurrence of an Event of Default under either of the
Security Documents and/or the Promissory Note;
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(c) The loss or destruction which is not fully insured, or the
unauthorized sale, transfer or disposition (without the prior written consent of
Secured Party) or the unauthorized encumbrance of any of the Collateral.
8. REMEDIES.
Secured Party shall have the following remedies hereunder:
(a) Acceleration and Foreclosure, Etc. Upon the happening of any
Event of Default specified in Section 7 above, and at any time thereafter, at
the option of Secured Party, any and all Indebtedness secured hereby shall
become immediately due and payable without demand or any notice to Pledgor or
any other person obligated thereon and Secured Party shall have and may exercise
any and all of the rights and remedies of a secured party under the Uniform
Commercial Code as adopted in the State of Arizona, and as otherwise
contractually granted herein or under any other applicable law or under any
other agreement executed by Pledgor in favor of Secured Party, including,
without limitation, the right and power to sell, or otherwise dispose of or
utilize such portion of the Collateral or any part or parts thereof in any
manner consistent with Chapter 9 of the Arizona Uniform Commercial Code after
default by Pledgor, and to apply the proceeds thereof toward payment of any
costs and expenses and reasonable attorneys' fees and legal expenses thereby
incurred by Secured Party and toward payment of the obligations in such order or
manner as Secured Party may elect.
(b) Waiver of Notice, Etc. Pledgor agrees that if such notice of
default is mailed, postage prepaid, or sent by facsimile, charges prepaid, to
Pledgor, at least fifteen (15) days before the time of the proposed sale or
disposition, such notice shall be deemed reasonable and shall fully satisfy any
requirement of giving notice, and a proposed sale may take place anytime after
such fifteen-day (15) period (but not more than thirty (30) days thereafter)
without the necessity of sending another notice to Pledgor. Secured Party may
postpone and reschedule any proposed sale at its option without the necessity of
giving Pledgor further notice of such fact as long as the rescheduled sale
occurs within thirty (30) days of the originally scheduled sale.
(c) Method of Sale of Collateral Approved. All recitals in any
instrument of assignment or any other document or paper executed by Secured
Party incident to sale, transfer, assignment or other disposition or utilization
of the Collateral or any part thereof hereunder shall be sufficient to establish
full legal propriety of the sale or other action taken by Secured Party or of
any fact, condition or thing incident thereto and all prerequisites of such sale
or other action shall be presumed conclusively to have been performed or to have
occurred.
9. SECURED PARTY'S POWERS AND DUTIES WITH RESPECT TO COLLATERAL.
(a) Secured Party shall be in no way liable to Pledgor or
responsible for any diminution in the value of the Collateral from any cause
whatsoever.
(b) Pledgor agrees to pay all taxes, charges, transfer fees and
assessments against the Collateral and to do all things necessary to preserve
and maintain the value and collectibility thereof, and on the failure of Pledgor
to so do, Secured Party may, after giving Pledgor written notice
139
of its intention to do so, make such payments and advance such sums on account
thereof as Secured Party, in Secured Party's discretion, deems desirable.
Pledgor agrees to reimburse Secured Party immediately upon demand for all such
payments and advances plus interest thereon at the rate of eighteen percent
(18%) per annum or at such lesser rate as may be the maximum rate allowed by
applicable law, repayment of all of which is secured by this Security Agreement
and the Collateral.
(c) Secured Party, or any of its agents, shall have the right to
call at reasonable times at the Pledgor's place or places of business at
intervals to be determined by Secured Party, and without hindrance or delay, to
inspect, audit, check, and make extracts from the books, records, journals,
orders, receipts, correspondence, and other data relating to the Pledgor's
operations.
10. GENERAL AUTHORITY.
Effective immediately, but exercisable by Secured Party only upon
the occurrence of an Event of Default, Pledgor hereby irrevocably appoints
Secured Party as Pledgor's true and lawful attorney-in-fact with full power of
substitution, in Secured Party's name or Pledgor's name or otherwise, for
Secured Party's sole use and benefit, but at Pledgor's cost and expense, to
exercise at any time and from time to time all or any of the following powers
with respect to all or any of the Collateral:
(a) To demand, xxx for collection, receive and give acquittance for
any and all monies due or to become due upon and by virtue thereof;
(b) To receive, take, endorse, assign and deliver any and all
checks, notes, drafts, documents and other property taken or received by Secured
Party in connection therewith; and
(c) To extend the time of payment and to make any allowance or other
adjustments with reference thereto.
Provided, however, the exercise by Secured Party of or failure to so exercise
any such authority shall in no manner affect Pledgor's liability to Secured
Party hereunder or in connection with the Indebtedness; and provided further,
that Secured Party shall be under no obligation or duty to exercise any of the
powers hereby conferred upon it, and it shall have no liability for any act or
failure to act in connection with any of the Collateral. Secured Party shall not
be bound to take any steps necessary to preserve rights in any instrument,
contract or lease against prior parties.
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9. SECURITY INTEREST ABSOLUTE.
Until all obligations are paid in full, all rights of Secured Party and the
pledge and security interest hereunder, and all obligations of Pledgor
hereunder, shall be absolute and unconditional, irrespective of:
(a) Any lack of validity, regularity, or enforceability of the
Promissory Note, Security Documents or any other agreement or instrument
relating thereto;
(b) Any change in the time, manner, or place of payment of, or in
any other term of, all or any of the Indebtedness, or any other amendment or
waiver of or any consent to any departure from the Promissory Note or Security
Documents, including, without limitation, any increase in Indebtedness resulting
from the extension of additional credit to Pledgor or otherwise;
(c) Any taking, exchange, release, or nonperfection of any other
Collateral, or any taking, release, or amendment or waiver of or consent to
departure from any of the Indebtedness;
(d) Any manner of application of Collateral, or proceeds thereof, to
all or any of the Indebtedness, or any manner of sale or other disposition of
any Collateral for all or any of the Indebtedness or any other assets of
Pledgor;
(e) Any change or restructuring of the structure or existence of the
Company; or
(f) Any other circumstance which might otherwise constitute a
defense available to, or a discharge of, Pledgor or a third-party grantor of a
security interest.
10. SURVIVAL OF AGREEMENTS, REPRESENTATIONS AND WARRANTIES.
All agreements, representations and warranties contained herein or
made in writing by or on behalf of Pledgor in connection with the transactions
contemplated hereby shall survive the execution and delivery of this Security
Agreement, any investigation at any time made by Secured Party or on its behalf,
and the acquisition and disposition of the Indebtedness. All statements
contained in any certificate or other instrument delivered by or on behalf of
Pledgor pursuant hereto or in connection with the transactions contemplated
hereby shall be deemed representations and warranties by Pledgor hereunder.
11. DEALINGS WITH PLEDGOR.
It is expressly understood and agreed that, notwithstanding anything
else contained in this Security Agreement to the contrary, Secured Party may,
for all purposes hereof deal solely with Pledgor in connection therewith, and
nothing herein shall be construed so as to require dealings with, consent of, or
notice to any other parties or persons.
12. AGREEMENT NOT EXCLUSIVE REMEDY.
This Security Agreement shall not prejudice the right of Secured
Party, and its option, to enforce collection of the Indebtedness by suit or in
any lawful manner. If Secured Party has additional security, then it may resort
to such other security for the payment of the Indebtedness
141
secured hereby. No right or remedy in this Security Agreement or in any
instrument evidencing the Indebtedness is intended to be exclusive of any other
right or remedy, but every such right or remedy shall be cumulative and shall be
in addition to every other right or remedy herein or therein conferred, or now
or hereafter existing, by contract, at law or in equity or by statute.
13. NON-WAIVER PROVISION.
No delay or omission by Secured Party to exercise any right or
remedy shall impair any such right or remedy or any other right or remedy or
shall be construed to be a waiver of any Event of Default or an acquiescence
therein; and every right and remedy herein conferred or now or hereafter
existing by contract or at law or in equity or by statute may be exercised
separately or concurrently and in such order and as often as may be deemed
expedient by Secured Party. Not limiting the generality of the foregoing,
pursuit or exercise of any right or remedy conferred herein, or by law or in
equity or by statute, shall not be, and shall not be considered to be, an
election against, waiver or relinquishment of, any other right or remedy.
14. SEVERABILITY.
The invalidity or unenforceability of any of the rights or remedies
herein provided in any jurisdiction shall not in any way affect the right to the
enforcement in such jurisdiction or elsewhere of any of the other rights or
remedies herein provided.
15. APPLICABLE LAW.
This Security Agreement is being delivered and is intended to be
performed in the State of Arizona and shall be construed and enforced in
accordance with and governed by the substantive law of Arizona.
16. BINDING AGREEMENT.
This Security Agreement shall be binding upon and inure to the
benefit of the successors, representatives and assigns of the parties hereto.
17. ENTIRE AGREEMENT.
This Security Agreement contains the entire Security Agreement
between Secured Party and Pledgor and supersedes all prior agreements and
understandings relating to the subject matter hereof. Notwithstanding the prior
sentence, the parties hereto recognize the existence of that certain Purchase
Agreement for Real and Personal Property dated March 28, 2002 (the "PURCHASE
AGREEMENT"), executed by and between Secured party and the Company, and
acknowledge that the Purchase Agreement grants certain limited rights of
rescission to the Company. To the extent that the Company duly exercises any
such right, this Security Agreement shall be subject to such change. It may not
be changed or terminated orally but may only be changed by an agreement in
writing signed by the party or parties against whom enforcement of any waiver,
change, modification, extension, discharge or termination is sought.
18. CAPTIONS. The captions of this Security Agreement are for the
purpose of reference only and shall not limit or otherwise affect any of the
terms hereof.
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19. NOTICES. All notices, certificates, requests, consents and other
communications hereunder shall be in writing and shall be mailed by first class
registered or certified mail, postage prepaid, or by facsimile, charges prepaid,
as follows:
(a) If to Secured Party, to the following address:
000 Xxxxx 00xx Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
and
X. Xxxxxxx Xxxxx, Esq.
The Xxxxxxxx Law Firm, P.C.
0000 X. Xxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000-0000
(b) If to Pledgor, to the following address:
c/o Xxxxxx X. Xxxxxxx
000 Xxxx Xxxxxxx
Xxxxxxx, Xxxxxxx 00000
and
Xxxx X. Xxxxxxxxx, Esq.
0000 Xxxx Xxxxx
Xxxx, Xxxxxxx 00000
or
(c) A such other address as either party may designate by written
notice to the other party in accordance herewith.
143
IN WITNESS WHEREOF, this Pledge and Collateral Assignment of Limited
Liability Company Interest and Security Agreement has been executed and
delivered as of the date first above written.
DATED: March 28, 2002 PLEDGOR:
NEW MEXICO AND ARIZONA LAND COMPANY, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
DATED: March 28, 2002 SECURED PARTY:
NZ CORPORATION,
an Arizona corporation
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Its: Treasurer
NZ DEVELOPMENT CORPORATION,
an Arizona corporation
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Its: Treasurer
NZU, INC.,
a New Mexico corporation
144
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Its: Treasurer
STATE OF Arizona )
----------------------------
)ss.
County of Maricopa )
--------------------------
SUBSCRIBED AND SWORN TO before me this 28th day of March, 2002, by Xxxxxx
X. Xxxxxxx as manager of the New Mexico and Arizona Land Company, LLC.
/s/ Xxxxxx X. Xxxxxx
0 ----------------------------
Notary Public
My commission expires:
March 25, 2004
--------------------
STATE OF Arizona )
----------------------------
)ss.
County of Maricopa )
---------------------------
SUBSCRIBED AND SWORN TO before me this 29th day of March, 2002, by Xxxxxx
Xxxxxx as treasurer of the NZ Corporation, NZ Development Corporation, and NZU,
Inc.
/s/ Xxxxx X. Xxxxxx
------------------------------
Notary Public
My commission expires:
10-14-2003
----------------------------
145
LIMITED LIABILITY COMPANY CONSENT AND AUTHORIZATION
DATED: March 28, 2002
To induce NZ Corporation, NZ Development Corporation, and NZU
Corporation (collectively "SECURED PARTY") to enter into both of the Promissory
Note referenced in Section 3 of the foregoing Collateral Assignment of Limited
Liability Company Interest and Security Agreement (herein called the "Security
Agreement"), with the Company (as defined in the Security Agreement) pursuant to
the foregoing Security Agreement, the undersigned hereby certifies, represents
and agrees that on this date and as of the date which the Security Agreement
bears:
1. The undersigned is the sole member of all the limited liability
companies constituting the Company, whose full and exact names and address are
as follows:
New Mexico and Arizona Land Company, LLC
000 Xxxx Xxxxxxx
Xxxxxxx, Xxxxxxx 00000
2. The undersigned has full power and authority in the name and on
behalf of the said New Mexico and Arizona Land Company, LLC to execute and
deliver the Security Agreement, any other financial agreement between the said
Company and Secured Party, and such instruments, documents and other writings as
may be desirable to carry out the purposes and intent of said Security Agreement
or agreements; and to secure any indebtedness of the Pledgor to Secured Party by
assignment, pledge, mortgage, transfer and/or delivery of any property or assets
of the said New Mexico and Arizona Land Company, LLC; and
3. Xxxxxx X. Xxxxxxx, manager of the New Mexico and Arizona Land
Company, LLC, is hereby requested, authorized and empowered to and on behalf and
in the name of company to execute and deliver any and all documents identified
and set forth in said Security Agreement.
4. The undersigned hereby consents to the pledge and collateral
assignment of all of the membership interests in the Company as described in the
Security Agreement.
NEW MEXICO AND ARIZONA LAND COMPANY, LLC,
an Arizona limited liability company
By: /s/ Xxxxxx X. Xxxxxxx
---------------------------------------
Xxxxxx X. Xxxxxxx
Its: Manager
NOTARY ON FOLLOWING PAGE
000
XXXXX XX Xxxxxxx )
----------------------------
)ss.
County of Maricopa )
---------------------------
SUBSCRIBED AND SWORN TO before me this 28th day of March, 2002, by Xxxxxx
X. Xxxxxxx as manager of the New Mexico and Arizona Land Company, LLC.
/s/ Xxxxxx X. Xxxxxx
--------------------------
Notary Public
My commission expires:
March 25, 2004
--------------------------
147